When a transfer price is set lower
a. the profits of the division producing the intermediate product will rise
b. the profits of the division producing the intermediate product will fall
c. the costs of the division producing the intermediate product will rise
d. the costs of the division producing the intermediate product will fall
b
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A sin tax is an example of:
A. a Pigovian tax. B. government policy increasing total surplus in a market. C. a tax that increases the efficiency of a market. D. All of these statements are true.
You want to have $100,000 in five years. If the interest rate is 8 percent, about how much do you need to have today?
a. $66,225.25 b. $67,556.42 c. $68,058.32 d. $71,428.57
An example of the opportunity to gain human capital would be:
A. a firm offering on-the-job training. B. a firm starting a community garden for its employees. C. a firm expanding and creating 20 more jobs. D. All of these are examples of human capital.
Explain how comparative advantage, specialization and division of labor are related
What will be an ideal response?