Determine the radius and interval of convergence. 
Definitions:
Excess Capacity
A scenario where a company's production facilities are capable of producing more than is needed to meet the demand.
Market-Based Transfer Prices
Transfer prices set based on market prices for similar goods or services, used in transactions between company divisions.
Suboptimal Decision
A decision that does not achieve the best possible outcome or maximizes the potential value.
Divisional Autonomy
The extent to which individual divisions or units within a larger organization are given the freedom to operate independently and make their own strategic decisions.
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