Multiple Choice
If a firm uses optimal transfer pricing between production division A and marketing division B,and a competitive external market for the output of division A exists,then production division A will surely:
A) make positive economic profits.
B) make normal economic profits.
C) sell at marginal costs.
D) sell at the external price.
E) sell at less than the external price.
Correct Answer:
Verified
Correct Answer:
Verified
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