In markets that are not perfectly competitive, ________.   A. minimum transfer price will equal the incremental cost per unit incurred up to the point of transfer   B. companies can increase their capacity utilization only by decreasing their prices   C. the opportunity cost will equal the minimum contribution margin   D. the selling division will not have any unused capacity

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter11: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 14CQ
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In markets that are not perfectly competitive, ________.
 
A. minimum transfer price will equal the incremental cost per unit incurred up to the point of transfer
 
B. companies can increase their capacity utilization only by decreasing their prices
 
C. the opportunity cost will equal the minimum contribution margin
 
D. the selling division will not have any unused capacity
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