When a transfer price is set lower
a. the costs of the division using the intermediate product will fall
b. the profits of the division using the intermediate product will be unaffected
c. the profits of the division using the intermediate product will fall
d. the profits of the division using the intermediate product will rise
d
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Thinking at the margins means deciding about
a. maximizing goods and services. b. investing with borrowed money. c. adding or subtracting one additional unit of some resource. d. increasing or decreasing technical know-how.
Markets with hit-and-run entry and exit experience
A) barriers to entry. B) firms entering whenever they can make a profit and exiting when they cannot make a profit. C) steady long-run economic profit. D) a very steady number of firms.