The price used to sell goods or services between subsidiaries in a company is
A) the tax avoidance price.
B) set at the marginal cost of the producing subsidiary.
C) determined by the minimum of the average cost curve.
D) a transfer price.
D
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According to social interest theory, ________
A) price regulations are unconstitutional B) regulation helps markets achieve efficiency C) monopoly practices last forever D) unregulated firms try to avoid creating deadweight loss
What is the price of a coupon bond that has annual coupon payments of $85, a par value of $1000, a yield to maturity of 10%, and a maturity of three years?
A) $211.38 B) $898.84 C) $962.70 D) $1255.0
Fractional reserve banking began as a result of the search for additional profits
a. True b. False Indicate whether the statement is true or false
You have $20,000 of current income and $45,000 of future income. The interest rate between the current and future period is 2 percent. When you allocate consumption optimally between the two periods the marginal rate of time preference between the two periods is
A. 0.80. B. -1.02. C. -1.00. D. -1.80.