Q1 how is the transfer price of an intermediate product

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Reference no: EM13352709

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 -.20Q
Suppose 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?

Reference no: EM13352709

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