To Avoid the Problem of Double Marginalization

Multiple Choice

To avoid the problem of double marginalization:

A) transfer prices must be set that maximize the overall value of the firm rather than the profits of the upstream division.
B) firms should put more emphasis on vertical integration.
C) firms should engage in two-part pricing.
D) firms should engage in commodity bundling, unless it is possible to engage in either first- or second-degree price discrimination.