Laissez Faire Has Two Divisions: the Cologne Division and the Bottle

question 85

Multiple Choice

Laissez Faire has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can be used by the Cologne Division. The Bottle Division's variable manufacturing cost is $2, shipping cost is $0.10, and the external sales price is $3. No shipping costs are incurred on sales to the Cologne Division, and the Cologne Division can purchase similar containers in the external market for $2.60. The Bottle Division has sufficient capacity to meet all external market demands in addition to meeting the demands of the Cologne Division. Using the general rule, the transfer price from the Bottle Division to the Cologne Division would be:

• A)$2.00.
• B)$2.10.
• C)$2.60.
• D)$2.90.
• E)$3.00.

Identify mechanisms of attitude change and how they relate to behavior.

Understand the role of cognitive dissonance in attitude and behavior inconsistency.

Apply knowledge of social psychology to explain how perceptions and social beliefs influence personal and social behavior.

Acknowledge the impact of societal beliefs and attitudes on individual mental health and coping strategies.

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Definitions:

Total Surplus

The sum of consumer and producer surplus, representing the total net benefit to society from the production and consumption of a good or service.

Deadweight Loss

A societal expense caused by disruptions in the marketplace, happening when there's a discrepancy between supply and demand levels.

Free-Trade Policy

A policy to eliminate import/export restrictions or tariffs among countries, facilitating a more free flow of goods and services across borders.

Exporting Steel

The process of producing steel in one country and selling it to buyers in another country.