The general transfer pricing rule considers the additional outlay costs incurred by the supplying unit and opportunity costs for the supplying unit. In which scenarios will opportunity costs be zero?
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The general transfer pricing rule considers the additional outlay costs incurred by the supplying unit and
| a. |
Where there are reliable external markets. |
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| b. |
Where there is no relaible external market and limited spare capacity; where there is no relaible market and spare capacity; where there is no reliable market and no spare capacity. |
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| c. |
Where there is a relaible external market and spare capacity, where there is no relaible external market and spare capacity. |
|
| d. |
Where there is a reliable external market and no spare capacity. |
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- Illegal fishing activities are an indication of inefficient resource allocation. Do you agree with this statement? Explain your answer.The difference between private cost and social cost is that A) social cost only considers the external cost borne by society. B) social cost only considers the cost borne by people other than the producer. C) private cost only considers the cost borne by producers of the good. social cost also includes any external benefit whereas private cost excludes D) all external benefits. E) there is no difference; the terms refer to the same cost.It was not quite what the planners had in mind when Sweden and Denmark opened their expensive bridge across the Oresund strait in July. After an early boost from summer tourism, car crossings have fallen sharply, while trains now connecting Copenhagen, the Danish capital, and Malmo, Sweden’s third city, are struggling to run on time. Many people think the costs of using the bridge are simply too high. And, from the point of view of Scandinavian solidarity, the traffic is embarrassingly one-sided: far more Swedes are going to Denmark than vice versa. So last week the authorities decided to knock almost 50% off the price of a one-way crossing for the last three months of this year. The two governments, which paid nearly $2 billion for the 16km (10-mile) state-owned bridge-cumtunnel, reckoned that, above all, it would strengthen economic ties across the strait and create, within a few years, one of the fastest-growing and richest regions in Europe. But ministers on both sides of the…
- It was not quite what the planners had in mind when Sweden and Denmark opened their expensive bridge across the Oresund strait in July. After an early boost from summer tourism, car crossings have fallen sharply, while trains now connecting Copenhagen, the Danish capital, and Malmo, Sweden’s third city, are struggling to run on time. Many people think the costs of using the bridge are simply too high. And, from the point of view of Scandinavian solidarity, the traffic is embarrassingly one-sided: far more Swedes are going to Denmark than vice versa. So last week the authorities decided to knock almost 50% off the price of a one-way crossing for the last three months of this year. The two governments, which paid nearly $2 billion for the 16km (10-mile) state-owned bridge-cumtunnel, reckoned that, above all, it would strengthen economic ties across the strait and create, within a few years, one of the fastest-growing and richest regions in Europe. But ministers on both sides of the…The term external to the exchange. refers to a market exchange that affects a third party who is outside or a) private costs b) externality c) market failure d) social costsSuppose the given functions describe the market for artisanal single-batch maple syrup. If climate change would cause this market to collapse entirely*, what is the total market benefit of avoiding that environ- mental catastrophe? 7.5 2 Ps= 5+Qs *Extraction of syrup requires below-freezing nights and relatively warm days in the winter PD = 100 QD
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