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? a.Where there are reliable external markets. 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. 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.

The general transfer pricing rule is that the minimum must be greater than or equal to the marginal…

Answered: The general transfer pricing rule…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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?

	a.	Where there are reliable external markets.
	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.
	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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