When a transfer price is set lower
a. the buying division will chose to purchase less from the selling division
b. the buying division will chose to purchase more from the selling division
c. the selling division will chose to purchase less from the buying division
d. the selling division will chose to purchase more from the buying division
b
You might also like to view...
How does the production of a U.S. firm located in France affect U.S. GDP? How does the production of a French firm located in Ohio affect U.S. GDP?
What will be an ideal response?
The text describes three different "degrees" of price discrimination
Of these, which one is theoretically capable of generating the greatest amount of economic profit for the firm? Why? In contrast, which one do you think has the greatest applicability to the range of goods and services consumers typically purchase?
If there is no product differentiation at? all, then the individual firm has a demand curve that is
a. perfectly inelastic and identical to the firm in perfect competition. b. slightly downward sloping and identical the firm in monopolistic competition. c. perfectly elastic and identical to the firm in perfect competition. d. unit elastic and identical to the firm in perfect competition.
Suppose that white workers are getting paid $21/hour, while similarly-productive African-American workers are getting paid $18/hour. A prejudiced white employer with a discrimination coefficient of $24/hour will:
A. Hire African-Americans only if their wage rate falls to $3/hour B. Hire African-American workers C. Not hire African-Americans at all, even if they offer to work for free D. Not hire African-Americans, unless they work for free