Where there is a perfectly competitive external market for a transfer product, and the final product division maximizes profit at a lower output level than that of the transfer product division, the transfer products division should force the final products division to sell the additional units of final product that would be needed to absorb the amount of output that the transfer product division is producing.
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Q1: Where there is no external market for
Q2: A firm produces two products, "f" and
Q4: Markup on price is the proportion of
Q5: Where there is a perfectly competitive external
Q6: Second-degree price discrimination is the practice of
Q7: Price discrimination allows different prices for the
Q8: Markup on cost is the proportion of
Q9: In the case of joint products produced
Q10: In the case of joint products produced
Q11: Where there is a perfectly competitive external
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