The price used to sell goods or services between subsidiaries in a company is
A) the tax avoidance price.
B) set at the marginal cost of the producing subsidiary.
C) determined by the minimum of the average cost curve.
D) a transfer price.
D
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Initially a firm pays a wage and gets an output per worker which are given index numbers of 1.00. Five possible 3 percent increases in the wage and the accompanying output per worker are as follows:
1.03 and 1.09, 1.06 and 1.17, 1.09 and 1.24, 1.13 and 1.29, 1.16 and 1.31. What is the efficiency wage? A) 1.03 B) 1.06 C) 1.09 D) 1.13 E) 1.16
A currency appreciation
a. reduces aggregate demand and increases aggregate supply. b. reduces aggregate demand and aggregate supply. c. increases aggregate demand and reduces aggregate supply. d. increases aggregate demand and aggregate supply.