If the fixed costs can be ignored, a relatively good approximation of the correct transfer price is

a. average costs
b. average fixed costs
c. average variable costs
d. the market price


a

Economics

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A level of GDP cannot be at equilibrium when aggregate demand exceeds output because firms will notice that

A. inventory stocks are building up. B. inventory stocks are being depleted. C. their profits are negative. D. many of their workers have little to do.

Economics

If most workers are risk adverse why do we still see many workers agreeing to contracts where their compensation is variable like commissions for magazine salesmen or car salesmen?

What will be an ideal response?

Economics

Which of the following is an allowable deduction?

A. Unreimbursed medical expenses that exceed 7.5% of AGI B. State and local income and property taxes C. Interest on qualified education loans up to a certain limit D. All of the answer options are correct.

Economics

The purpose of antitrust legislation is

A) to reduce unemployment. B) to reduce the power of monopoly. C) to increase the power of monopoly. D) to maximize employment for a given price level.

Economics