When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market
a. It is appropriate to ignore that the market price includes a margin above marginal cost
b. It is OK if the product on the market includes costly features your downstream division does not use
c. it is OK if the product on the market is inexpensive because its quality is lower than you use
d. if it is similar enough, it calls into question whether there are gains from producing it in-house
d
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The "lemons" problem is that
a. cars of verifiable high quality are withheld from the used car market b. cars of verifiable low quality are withheld from the used car market c. cars of unverifiable high quality are withheld from the used car market d. cars of unverifiable low quality are withheld from the used car market
Which statement is true?
A. Productivity only partially explains wage differentials. B. The reason why college graduates earn much more than high school graduates is that they have received very valuable job training in college. C. With almost no exceptions, the more productive you are, the more you earn. D. None of the statements are true.
An increase in the demand for the Brazilian real induces
A) an increase in the demand for Brazilian goods. B) a decrease in the supply of dollars. C) an increase in the real price of a dollar. D) an increase in the dollar price of a real.
How can a sole proprietorship raise funds needed for firm expansion?
What will be an ideal response?