Internal markets, which are markets that managers set up within their organization, are:

Question

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Internal markets are set up to allocate resources of a company more efficiently, often not using real money. They are used as a tool to improve the allocation of resources within an organization and to encourage managers to make efficient use of resources. While they may use pricing mechanisms, they are not based on equilibrium prices and do not necessarily involve real money transactions. Option A is incorrect as internal markets can sell to any approved buyers within the organization. Option B is incorrect as internal markets may not use predetermined prices. Option D is incorrect as internal markets are typically set up within a single company, rather than across firms in an industry.

Internal Markets, Which Are Markets That Managers Set Up Within