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Q1. How is the transfer price of an intermediate product determined when(a) There is no external market for the intermediate product,(b) A perfectly competitive external market for the intermediate product exists, and (c) An imperfectly competitive external market for the intermediate product exists?
Q2. Suppose Demand function P= 240 -.20QSuppose Supply function p= 1/2Q + 100
Illustrate the quantity demanded at a price of $240?Illustrate the consumer surplus if the price is $220?Illustrate the quantity supplied at a price of $100?
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