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    Exam 22: Management Control Systems, Transfer Pricing, and Multinational Considerations
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    When an Industry Has Excess Capacity, Market Prices May Drop
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When an Industry Has Excess Capacity, Market Prices May Drop

Question 123

Question 123

Multiple Choice

When an industry has excess capacity, market prices may drop well below their historical average. If this drop is temporary, it is called ________.


A) distress prices
B) dropped prices
C) low-average prices
D) substitute prices

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