Halifax & Smyth (H&S) Is a Clothier That Specializes in Expensive

question 104

Multiple Choice

Halifax & Smyth (H&S) is a clothier that specializes in expensive men's suits, and the firm makes the suits from wool fabrics that are woven by one of the firm's divisions. This division is not the only source for this material, and H&S could buy or sell wool fabric in the outside competitive market. H&S will buy some of the wool fabric that it needs for suits from the outside market if the:

• A) market price is less than the optimal transfer price if the outside market did not exist.
• B) market price is less than the point where the net marginal revenue of weaving wool fabric intersects the marginal cost of wool fabric.
• C) market price is less than the point where the net marginal revenue of assembling men's suits intersects the marginal cost of assembly.
• D) Both A and B are correct.

---

Definitions:

Heroin Withdrawal

The physiological and psychological symptoms that occur when a person who is dependent on heroin stops using the drug.

Relapse-Prevention Training

A behavioral strategy in therapy designed to teach individuals who are trying to maintain changes in their behavior how to anticipate and cope with the problem of relapse.

Aversion Therapy

A form of behavioral therapy that uses negative stimuli to reduce or eliminate undesirable behaviors, such as substance abuse.

Substance Misuse

The harmful use of substances, including drugs and alcohol, leading to significant social, legal, or health-related problems.