A transfer using a mandated market price is less effective when the downstream unit:
A) is attempting to establish its market position based on a cost advantage
B) is attempting to establish its market position based on a value advantage
C) has already achieved a dominant market position
D) has failed to achieve a dominant market position

Question

Quizplus · Accepted Answer

A mandated market price may not allow the downstream unit to maintain a cost advantage, which is crucial for establishing its market position based on cost.

A Transfer Using a Mandated Market Price Is Less Effective