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Where There Is No External Market for a Transfer Product

Question 28

Multiple Choice

Where there is no external market for a transfer product, the profit maximizing condition for a transfer product firm is:

A) MR_F = MC_F - MC_T
B) MR_F = MC_F + MC_T
C) MR_A + MR_B = SMC.
D) MR_A - MR_B = SMC.
E) MR_F = MC_F = MC_T

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