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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 23 times)

rachel9

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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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Answer to Question 1

a

Answer to Question 2

d




rachel9

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Reply 2 on: Jul 1, 2018
Gracias!


mochi09

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Reply 3 on: Yesterday
Wow, this really help

 

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