Tom & Jerry are running Hanna Barbera's lemonade stand as two profit centers. Tom makes the lemonade while Jerry sells it. Jerry argues that Tom is transferring the lemonade to him priced too high, which forces him to charge the customers a high price, losing sales. What could be a profitable solution to this transfer-pricing problem?
a. Move the decision making to Hanna Barbera
b. Turn Tom's division into a cost center
c. Base Tom's reward on the company profits
d. Base Jerry's reward on the company profits
b
Economics
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If the Fed were to announce that fighting inflation is not a high priority for the immediate future ________
A) households might expect higher inflation B) the short run aggregate supply would shift upwards C) firms might begin raising their prices to keep up with expected inflation D) all of the above E) none of the above
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Provide three rationales for government involvement in health care markets. Which is the most recent?
What will be an ideal response?
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