When a transfer price decreases
a. the buying division will want to sell less to the selling division
b. the buying division will want to sell more to the selling division
c. the selling division will want to sell less to the buying division
d. the selling division will want to sell more to the buying division
c
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Monopolization of either the labor market or the output market results in
A) higher wages than when both are competitive. B) a higher output price than when both are competitive. C) a higher level of output than when both are competitive. D) All of the above.
Assume that the market demand for a good is p = 100 - Q. Assume that the marginal product of labor is 1 and the firm can get all the labor it needs at a wage equal to 5
Compare the quantity of labor hired if the output market is competitive with the quantity hired if the output market is a monopoly.