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:

Inferring with Certainty

Inferring with certainty means drawing a conclusion that is considered to be absolutely true based on the available evidence and logical reasoning.

Implications

The possible effects or consequences that may result from a particular action, statement, or decision.

Grammatically Equivalent

Refers to phrases or sentences that have the same grammatical structure.

Denying the Antecedent

A logical fallacy that occurs when one incorrectly assumes that if the antecedent is not true, then the consequent cannot be true, in a conditional statement.