The Timex Group, a large multinational watchmaker, has its headquarters in the Netherlands. It has subsidiaries in many countries, including the Timex Group USA and TMX Philippines, Inc. One particular type of specialty watch is produced in the Philippines for export to the Timex Group USA Suppose the inverse demand curve for this watch in the United States is p=130-20. where p is measured in dollars and Q is measured in thousands of watches per week. These watches are produced at a constant marginal cost of $10 per watch by TMX Philippines. Timex USA treats the transfer price charged by TMX Philippines as ts marginal cost. What transfer price would maximize the profit of TMX Philippines? (Hint For any given transfer price the Timex Group USA will demand some quantity of watches. This relationship determines the demand facing TMX Philippines) I TMX Philippines maximies their own profit, then they will charge a transfer price of $ (Enter your response as a whole number)

The Timex Group, a large multinational watchmaker, has its headquarters in the Netherlands. It has subsidiaries in many countries, including the Timex Group USA and TMX Philippines, Inc. One particular type of specialty watch is produced in the Philippines for export to the Timex Group USA Suppose the inverse demand curve for this watch in the United States is p=130-20. where p is measured in dollars and Q is measured in thousands of watches per week. These watches are produced at a constant marginal cost of $10 per watch by TMX Philippines. Timex USA treats the transfer price charged by TMX Philippines as ts marginal cost. What transfer price would maximize the profit of TMX Philippines? (Hint For any given transfer price the Timex Group USA will demand some quantity of watches. This relationship determines the demand facing TMX Philippines) I TMX Philippines maximies their own profit, then they will charge a transfer price of $ (Enter your response as a whole number)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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