Under imperfect competition, where the external market price depends on the production decisions of the producer, the opportunity cost incurred buy the company as a result of internal transfers depends on the quantity sold internally.

Question

Quizplus · Accepted Answer

Under imperfect competition, internal transfers can affect the external market price, thus impacting the opportunity cost based on the quantity sold internally.

Under Imperfect Competition, Where the External Market Price Depends on the Production