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    Managerial Economics and Strategy Study Set 2
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    Exam 7: Firm Organization and Market Structure
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    Vertically Integrated Firms Can Use Transfer Pricing
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Vertically Integrated Firms Can Use Transfer Pricing

Question 31

Question 31

Multiple Choice

Vertically integrated firms can use transfer pricing


A) to avoid government price controls.
B) as a way to compensate managers for transferring among departments in a vertically integrated firm.
C) to avoid paying market prices for inputs.
D) to shift profit.

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