The Alpha Division of a Company,which Is Operating at Capacity,produces

question 67

Multiple Choice

The Alpha Division of a company,which is operating at capacity,produces and sells 1,000 units of a certain electronic component in a perfectly competitive market.Revenue and cost data are as follows: (CIA adapted)
$$\begin{array} { | l | r | } \text { Sales } & \$ 50,000 \\\hline \text { Variable costs } & 34,000 \\\hline \text { Fixed costs } & 12,000 \\\hline\end{array}$$ The minimum transfer price that should be charged to the Beta Division of the same company for each component is:

• A) $12.
• B) $34.
• C) $46.
• D) $50.

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Definitions:

Chaining

A behavioral technique where sequences of behaviors are broken down into their individual components and taught one at a time.

Operant Conditioning

A behavioral adjustment technique in which the severity of an action is modified by using reinforcements or penalties.

Favorable Stimulus

Any external cue or event that elicits a positive reaction, often reinforcing a behavior or creating a pleasant experience.

Shaping

a method of training by which successive approximations toward a desired behavior are reinforced until the behavior is achieved.