When transferred products can be sold in perfectly competitive external markets, the optimal transfer price is the:
A) external market price.
B) marginal revenue of the transferred-to (buying) division.
C) marginal revenue in the output market.
D) marginal cost of the transferring (selling) division.
Correct Answer:
Verified
Q1: A by-product:
A) has MR = 0.
B) results
Q2: A 50% markup on price is equivalent
Q4: With price discrimination, higher prices are charged
Q5: If a firm charges a price of
Q6: When eP = -2, the optimal markup
Q7: When engaging in short-run incremental analysis, managers
Q8: During peak periods:
A) incremental costs are relevant
Q9: Consumers' surplus represents:
A) total revenues.
B) total revenues
Q10: If a firm charges a price of
Q11: A 50% markup on cost is equivalent
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