A problem with using the price of a product similar to the intermediate good sold on the market is
A) the market price includes a margin above marginal cost
B) the product on the market may include costly features your downstream division does not use
C) the product on the market may be cheap because it is not as high of quality as your downstream division uses
D) all of the above
Correct Answer:
Verified
Q46: Tom & Jerry are running Hanna Barbera's
Q47: If the fixed costs are relatively large,a
Q48: When considering setting the transfer price at
Q49: When considering setting the transfer price at
Q50: If the fixed costs can be ignored,a
Q52: When a transfer price increases
A)the profits of
Q53: When a transfer price decreases
A)the profits of
Q54: When the transfer price is increased
A)the buying
Q55: Tom & Jerry are running Hanna Barbera's
Q56: When considering setting the transfer price at
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