Which of these contract terms reduce transfer pricing problems?
A. Double markups and two-part pricing
B. Two-part pricing and quotas
C. Quotas and double markups
D. Exclusive territories and two-part pricing
Answer: B
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Consider a competitive market where the demand and the supply depend on the current price of the good. Then fitting a line through the quantity-price outcomes will
A) give you an estimate of the demand curve. B) estimate neither a demand curve nor a supply curve. C) enable you to calculate the price elasticity of supply. D) give you the exogenous part of the demand in the first stage of TSLS.
National income (NI) is calculated by adjusting GDP for:
a. corporate and personal income taxes. b. investment and net exports. c. depreciation. d. Social Security insurance contributions and transfer payments.
A horizontal demand curve is
A. has elasticity of zero. B. unit elastic. C. perfectly elastic. D. perfectly inelastic.
If you can download 10 ring tones for your cell phone for $10 or you can download 11 ring tones for your cell phone for $10.50, then the marginal cost of the eleventh ring tone is
A. $0.50. B. $10.00. C. $10.50. D. $20.50.