If the fixed costs are relatively large, a relatively good approximation of the correct transfer price is
a. average costs
b. average fixed costs
c. average variable costs
d. the market price
c
You might also like to view...
As a percentage of total federal revenues the corporate income tax has _____
a. increased since 1960 b. declined since 1960 c. fallen during the 1980s, but risen since 1992 d. remained fairly constant since 1960
At a given point in time, if the demand for money increases: a. the interest rate will fall
b. there will be a movement downward along the money demand curve. c. there will be a movement upward along the money demand curve. d. there will be a rightward shift of the money demand curve. e. there will be a leftward shift of the money demand curve.
What is meant by "excess capacity"? How does it relate to consumer utility?
What will be an ideal response?
Using the figure above, if Jack and Jill specialize and gain from trade, then
A) Jack specializes on the production of soda and water. B) Jack specializes in the production of soda. C) Jack produces equal amounts of gallons of water and bottled water. D) Jack specializes in the production of bottled water. E) Jack and Jill produce beyond their PPF.