A reason there are divisional conflicts over the transfer price ...

[tichca]

A reason there are divisional conflicts over the transfer price
 a. the manager of the upstream division gets rewarded for a transfer price that is too high
  b. the manager of the downstream division gets rewarded for a transfer price that is too low
  c. the corporate headquarters does not have enough information to determine the correct transfer price
  d. all of the above

Question 2

Physicians who own their own diagnostic testing facilities tend to order more tests, charge higher fees for them, and have higher total bills to patients. This practice of self-referral is an example of
 a. moral hazard.
  b. adverse selection.
  c. resipsaloquitor.
  d. physician-induced demand.
  e. cognitive dissonance.

[mcomstock09]

Answer to Question 1

b

Answer to Question 2

D