Multiple Choice
You can manufacture a product in the US and transfer it to Europe. In the MC = $3 per unit, and the market price in Europe is $5 per unit. Should you manufacture the unit or not?
A) No, the net receipt of $5 is larger than the MC in the US.
B) Yes, the gross receipt of $3 is larger than the MC in the US.
C) No, the net receipt of $3 is the same as the MC in the US.
D) Yes, the net receipts in Europe exceed MC in the US.
Correct Answer:
Verified
Correct Answer:
Verified
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