Sporto Auto Company manufacturers each of the aluminum engines used in their cars, and there is no outside market for these engines. Suppose the marginal cost of producing the aluminum engines is constant at all quantities

What happens to the optimal transfer price and the quantity of cars produced if the cost of assembly increases? A) Price and quantity increase
B) Price and quantity remain the same
C) Price and quantity decrease
D) Price remains the same and quantity decreases

D

Economics

You might also like to view...

A negative externality imposes a burden or cost on others

Indicate whether the statement is true or false

Economics

Checking deposits at banks are

A) money. B) not money because they are an intangible. C) money only because they are insured by the FDIC. D) not money until they are converted into currency.

Economics