A firm that minimizes average cost will not survive in the long run

When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market

a. It is appropriate to ignore that the market price includes a margin above marginal cost b. Consider whether the product on the market includes costly features your downstream division does not use c. It is OK if the product on the market is inexpensive because its quality is lower than you use d. If it is similar enough, it is justification for you producing it in-house

If the producers bear a larger portion of tax incidence than the buyers, which of the following must be true?

A. They are not as business savvy as the buyers. B. Their supply curve must be more inelastic than the buyers demand curve. C. They face a very inelastic demand. D. Their supply curve must be more elastic than the buyers demand curve.