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
b
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The issue of bonds in corporate financing
a. is cheaper than stocks in the long run to the issuer. b. is riskier than stocks to the issuer. c. commits the issuer to make fixed annual payments even if profits are negative. d. All of the above are correct.
________ is an increase in the price level, while ________ is an increase in the price of one good in comparison to other goods and services.
A. Hyperinflation; inflation B. Inflation; hyperinflation C. Inflation; a relative price increase D. A relative price increase; inflation