Multiple Choice
Buster Brown shoes and McAn Shoes is a vertically integrated shoe manufacturer and shoe retail firm. Shoe retail is highly competitive. The optimal transfer price of shoes from Buster Brown to McAn Shoes is:
A) whatever the shoe manufacturer could sell shoes to other retail shoe stores
B) a price that is somewhat lower that the price it could sell shoes to other retail shoe stores
C) a price that is somewhat higher than the price it could sell to other retail shoe shore
Correct Answer:
Verified
Correct Answer:
Verified
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