Division a Makes a Part with the Following Characteristics

question 15

Multiple Choice

Division A makes a part with the following characteristics: Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $24 each.
-Suppose that Division A is operating at capacity and can sell all of its output to outside customers at its usual selling price. If Division A sells the parts to Division B at $24 per unit (Division B's outside price) , the company as a whole will be:

• A) better off by $5,000 each period.
• B) worse off by $15,000 each period.
• C) worse off by $5,000 each period.
• D) There will be no change in the status of the company as a whole.

Calculate and compare productivity across different countries.

Describe the benefits of international trade.

Recognize reasons for government intervention in markets.

Explain the short-run effects of changes in the money supply on inflation and unemployment.

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A hardware device that converts data between digital formats used by computers and analog signals used on telephone lines, enabling internet connectivity.

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A system of interconnected computers, devices, and technologies designed to communicate and exchange data.

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The delivery of different services, including servers, storage, databases, networking, software, analytics, and intelligence, over the Internet to offer faster innovation, flexible resources, and economies of scale.