If a Firm Has a Marketing Division and a Production

question 8

Multiple Choice

If a firm has a marketing division and a production division with increasing costs,and a competitive external market for the production division's output exists,then the marketing division should always buy:

• A) from the production division at production's price.
• B) all it wants at the external market price from the production division.
• C) only externally.
• D) all the production division can produce at the external price.
• E) what it wants at the external market price, first from whatever the production division wishes to sell and then, if necessary, externally.

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Definitions:

Infrastructure Problem

Issues or challenges related to the basic facilities, services, and installations needed for the functioning of a community or society, like roads, bridges, and power supplies.

Capital Flight

The rapid movement of large sums of money or capital out of a country due to economic or political instability, affecting the country's financial health.

Microlending

The provision of small loans to entrepreneurs and small businesses lacking access to banking and related services.

Human Capital

The knowledge and skills that make a person productive.