If the fixed costs are relatively small, a relatively good approximation to the correct transfer price is
a. average costs
b. average fixed costs
c. average variable costs
d. the market price
a
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A decrease in the supply of dollars on the foreign exchange market, all else equal, will result in:
A) appreciation of the U.S. dollar and depreciation of the foreign currency. B) appreciation of the U.S. dollar and appreciation of the foreign currency. C) depreciation of the U.S. dollar and depreciation of the foreign currency. D) depreciation of the U.S. dollar and appreciation of the foreign currency.
Regarding wage differences among various groups of workers — blacks and whites, men and women, etc. — most economists believe that
a. no such differences are evident from the available data. b. most of the differences are attributable to discrimination. c. some of the wage differences are attributable to discrimination, but there is disagreement about how much. d. none of the differences are attributable to discrimination.
Refer to Figure 5.7. Which diagram best represents an Engle curve where soup is a normal good?
A. A
B. B
C. C
D. D
Suppose two duopolists operate at zero marginal cost. The market demand is p = a - bQ. If firm 1 is the Stackelberg leader, what level of output will it choose?
A) q1 = (a - bq2 )/2b B) q1 = (a - 2bq2 )/2b C) q1 = a/b D) q1 = a/2b