A Company Is Highly Centralized

question 18

Multiple Choice

A company is highly centralized.Division X,which is operating at capacity,produces a component that it currently sells in a perfectly competitive market for $13 per unit.At the current level of production,the fixed cost of producing this component is $4 per unit and the variable cost is $7 per unit.Division Y would like to purchase this component from Division X.The price that Division X should charge Division Y per unit for this component is:

• A)$7.
• B)$11.
• C)$13.
• D)$15.

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Definitions:

Stimulus-Independent Thought

Thoughts that occur without any direct external triggers, allowing the mind to wander or engage in internal reflection.

Daydreams

A stream of consciousness that detaches from current external tasks or surroundings, allowing for spontaneous internal thoughts and imaginings.

Sternberg

Refers to Robert Sternberg, an American psychologist and professor best known for his theory on intelligence and creativity.

Short-Term Memory

A mental system that has a restricted capacity designed for briefly maintaining information for the purpose of processing.