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If a Firm Has a Marketing Division and a Production

Question 8

Multiple Choice

If a firm has a marketing division and a production division with increasing costs,and a competitive external market for the production division's output exists,then the marketing division should always buy:


A) from the production division at production's price.
B) all it wants at the external market price from the production division.
C) only externally.
D) all the production division can produce at the external price.
E) what it wants at the external market price, first from whatever the production division wishes to sell and then, if necessary, externally.

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