The efficient transfer price is
a. the upstream division's average cost
b. the upstream division's marginal cost
c. the downstream division's average cost
d. the downstream division's marginal cost
b
You might also like to view...
Economics only applies to
A. decision making by households. B. decision making by governments. C. decision making by business firms. D. all of these kinds of decisions.
When the Fed buys or sells government bonds to private banks in exchange for reserves, it is referred to as:
A) the Fed's dual mandate. B) open market operations. C) reserve targeting. D) moral suasion.
An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self interest always contradicts social interest." Do you agree or disagree? Substantiate your answer
What will be an ideal response?
Along the composite aggregate supply curve,
a. at very low output levels, greater AD increases real output but not prices. b. at intermediate output levels, greater AD increases both real output and prices. c. at the full-employment level of output, greater AD increases prices but not real output. d. All of these occur.