Multiple Choice
With a perfectly competitive external market for an intermediate product, the optimal transfer price for intracompany transfers of the intermediate product (between the production and marketing departments) is equal to the ____.
A) production department's marginal cost
B) production department's total cost
C) competitive market price
D) competitive market price plus cost of capital
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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