Vertically integrated firms can use transfer pricing
A) to avoid government price controls.
B) as a way to compensate managers for transferring among departments in a vertically integrated firm.
C) to avoid paying market prices for inputs.
D) to shift profit.
D
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In 2014, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. Suppose the effect on the buyers was larger than the effect on the sellers
Consequently, in the current market for peanut butter there is a ________ in the price of peanut butter and ________ in the quantity of peanut butter. A) rise; an increase B) rise; a decrease C) fall; a decrease D) fall; an increase
When foreigners are making more "investments" in a country than the residents of the country are making abroad, which of the following is most likely to occur?
a. Inflation. b. Rapid growth of the money supply. c. A balance of trade deficit. d. A negative net investment rate.
In a pure capitalist economy, "what to produce" is determined by
A. a central planning board. B. the price mechanism. C. the issuing of government coupons used along with money to purchase goods. D. None of these choices are true.
Even where imitation is possible, a firm may gain advantage from being the first to introduce an innovative product because of:
A. long-lasting brand-name recognition. B. a time lag between innovation and imitation by rivals. C. trade secrets that limit the ability of rivals to exactly imitate the product. D. all of these.