If Demand Is Perfectly Inelastic,the Deadweight Loss Caused by a Tax

question 256

True/False

If demand is perfectly inelastic,the deadweight loss caused by a tax will be zero.

Understand the interplay between cost-based and market-based transfer pricing methods.

Understand the strategic considerations in setting transfer prices, including tax implications and international operations.

Understand the principles and implications of transfer pricing within an organization.

Apply the general transfer-pricing formula to calculate optimal prices that support overall company interests.