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Author Question: If an individual has a constant MRS of shoes for sneakers of 3/4 (that is, he or she is always ... (Read 63 times)

rachel9

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on: Jul 1, 2018
If an individual has a constant MRS of shoes for sneakers of 3/4 (that is, he or she is always willing to give up 3 pairs of sneakers to get 4 pairs of shoes) then, if sneakers and shoes are equally costly, he or she will
 a. buy only sneakers.
  b. buy only shoes.
  c. spend his or her income equally on sneakers and shoes.
  d. wear sneakers only 3/4 of the time.

Question 2

When a transfer price is set lower
 a. the costs of the division using the intermediate product will fall
  b. the profits of the division using the intermediate product will be unaffected
  c. the profits of the division using the intermediate product will fall
  d. the profits of the division using the intermediate product will rise


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adf223

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Reply #1 on: Jul 1, 2018
Answer to Question 1

a

Answer to Question 2

d


rachel9

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Reply 2 on: Jul 1, 2018
Gracias!

diana chang

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Reply 3 on: Yesterday
Wow, this really help

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