When a transfer price decreases
a. the profits of the division producing the intermediate product will rise
b. the profits of the division producing the intermediate product will fall
c. the costs of the division producing the intermediate product will rise
d. the costs of the division producing the intermediate product will fall
b
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Suevania opens its doors to trade with Barvania. Barvania has a comparative advantage in the production of machinery. Hence, once trade occurs, Suevania's consumers will buy ________ machinery and pay ________ before
A) more; a higher price than B) more; a lower price than C) less; a higher price than D) less; a lower price than E) the same amount of; the same price as
Two goods that are complementary are:
a. wrapping paper and scotch tape. b. letter and fax. c. beef and chicken. d. bicycle and motorcycle. e. Coke and Pepsi.