If a Firm Uses Optimal Transfer Pricing Between Production Division

question 3

Multiple Choice

If a firm uses optimal transfer pricing between production division A and marketing division B,and a competitive external market for the output of division A exists,then production division A will surely:

• A) make positive economic profits.
• B) make normal economic profits.
• C) sell at marginal costs.
• D) sell at the external price.
• E) sell at less than the external price.

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Definitions:

Josef Breuer

An Austrian physician whose work in the 1880s with patient Anna O. led to the development of psychoanalysis.

Sigmund Freud

An Austrian neurologist known for founding psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Hypnotism

The practice of inducing a trance-like state in which a person is more susceptible to suggestion.

Psychoanalytic Treatment

A therapeutic process rooted in Freudian theory that seeks to explore and understand unconscious thoughts and behaviors through techniques like dream analysis and free association.