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 important to recognize 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 is justification for you producing it in-house
a
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Which of the following industries most closely approximates the oligopoly model?
a. dry cleaning b. fast food c. automobile manufacturing d. agricultural produce
Trent decides to spend an hour playing basketball rather than studying. His opportunity cost is: a. nothing because he enjoys playing basketball more than studying
b. the foregone benefit to his grades from studying for an hour. c. the increase in skill he obtains from playing basketball for that hour. d. nothing because he had a free pass into the sports complex to play basketball.
The world's population is increasing for many reasons. Which reason seems plausible, but is NOT currently contributing to population growth?
a. increased agricultural productivity b. increased birth rates c. decreased mortality rates d. improvements in health care
An externality refers to the idea that
A. explicit costs differ from implicit costs. B. decision-makers do not internalize all the costs. C. private and internal costs differ. D. we cannot do anything that does not affect other people.