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. Does the decision maker have the incentive to make a good decision?
a. Yes, because it increases the division profit
b. No, because it decreases division profit
c. Yes, because it does not affect division profit
d. No, because it increases company-wide profit
b
Economics
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A) increases; richer B) increases; poorer C) decreases; richer D) decreases; poorer
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A secondary effect of installment credit was the
(a) development of a new market in used durables. (b) emergence of a new network of dependable supplies of electric power. (c) surge in prices. (d) increased government intervention in household activity.
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