Use the Information Below to Answer the Following Question(s)

question 172

Multiple Choice

Use the information below to answer the following question(s) .Soft Cushion Company is highly decentralized.Each division is empowered to make its own sales decisions.The Assembly Division can purchase cushion stuffing from the Production Division or from external suppliers.The Production Division has been the major supplier of stuffing in recent years.The Assembly Division has announced that two external suppliers will be used to purchase the stuffing at $20 per kilogram for the next year.The Production Division recently increased its unit price to $40.The manager of the Production Division presented the following information; variable cost $32, fixed cost $8, to top management in order to attempt to force the Assembly Division to purchase the stuffing internally.The Assembly Division purchases 20,000 kg per month.
-The general guideline for determining the minimum transfer price is

• A)cover all employee costs incurred in production.
• B)fixed cost plus opportunity costs per unit to the vendor division.
• C)variable cost plus opportunity costs per unit to the vendor division.
• D)fixed cost plus incremental costs per unit up to the point of transfer.
• E)additional incremental costs per unit up to the point of transfer, plus opportunity costs per unit to the vendor division.

Identify factors that facilitate or hinder the establishment and maintenance of cartels.

Understand the prisoner’s dilemma and how it relates to the challenges of cooperation and competition in oligopolies.

Understand different market structures, including monopoly, oligopoly, monopolistic competition, and pure competition.

Identify traits and outcomes of collusive and non-collusive oligopolies.

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Definitions:

Cessation of Breathing

The stoppage of breathing, medically referred to as apnea, a condition that can be life-threatening and requires immediate medical attention.

Suicide

The intentional taking of one’s life.

Older Canadians

Refers to the demographic group of people living in Canada who are considered to be in the older age bracket, typically aged 65 and over.

Major Depressive Disorder

A mental health disorder characterized by persistent feelings of sadness, loss of interest, and various emotional and physical problems.