Transfer pricing is a method used to

A) determine whether a firm should make or buy a component product.
B) determine the correct value of a product as it moves from one stage of production to another.
C) minimize a multinational firm's tax liabilities.
D) All of the above


D

Economics

You might also like to view...

Refer to Figure 12-12. Consider a typical firm in a perfectly competitive industry that makes short-run profits. Which of the diagrams in the figure shows the effect on the industry as it transitions to a long-run equilibrium?

A) Panel A B) Panel B C) Panel C D) Panel D

Economics

Lucy can bake 200 cookies in an hour or watch her favorite tv show. If she chooses to watch her show, the cookies are an example of

a. Unlimited resources b. Limited wants c. Opportunity cost d. None of the above

Economics

The behavior of the entertainment industry in Detroit is a microeconomic topic

a. True b. False

Economics

Suppose that a professional photographer takes a prize-winning digital photo. She can sell a 5"x7" color print of the photo for $10 . She can also sell the digital file for $20 . There are 500 people willing to buy the color print and 2,000 people willing to buy the digital file. Assume the costs to the photographer are zero and that the people who purchase the digital file cannot resell the file

itself or any prints made from it. What should she do in order to maximize her profits? a. earn $5,000 by selling only the color prints b. earn $40,000 by selling only the digital files c. earn $45,000 by selling both the color prints and the digital files at their respective prices d. We do not have enough information with which to answer this question.

Economics