If there exists an external market for an intermediate good produced by a company, then an easy way to set a transfer price would be to use a:
A. full-cost transfer price.
B. market-based transfer price.
C. marginal-cost transfer price.
D. monopoly transfer price.
Answer: B
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A limited military draft is likely to be inefficient because
a. it transfers wealth from those who are drafted to those who benefit from the army's services. b. the wage rate paid to army personnel is set by the government, not by the market. c. more people will be drafted than would have joined a volunteer army. d. there is no guarantee that young adults with the lowest opportunity costs will be drafted.
The table above shows the total product schedule for The X Firm. The average product of labor is maximized at ________ workers because ________
A) 4; productivity is maximized when the 4th worker is employed B) 3; output starts to decrease with the 4th worker C) 5; output is maximized with the 5th worker D) 4; the marginal product of labor is increasing with the 4th worker E) 5; the APL exceeds the MPL for the 5th worker
Tommy's Teddy Bears incurs $300,000 per year in explicit costs and $50,000 in implicit costs. The shop earns $600,000 in revenues and has $1.1 million in net worth. Based on this information, what is accounting profit for Tommy's Teddy Bears?
A) $250,000 B) $300,000 C) $500,000 D) $1.35 million
Tariffs benefit the consumers of the import-competing goods
Indicate whether the statement is true or false