Author Question: If products similar to the intermediate good can be bought externally, an approximation of the ... (Read 55 times)

cherise1989 · **on:** Jul 1, 2018

If products similar to the intermediate good can be bought externally, an approximation of the correct transfer price is
a. average costs
b. average fixed costs
c. average variable costs
d. the market price

Question 2

Suppose there are 11 buyers and 11 sellers, each willing to buy or sell one unit of a good, with values 14, 13, 12, 11, 10, 9, 8, 7, 6, 5, 4,. Assume no transaction costs and a competitive market, what is the equilibrium price in this market?
a. 7
b. 8
c. 9
d. 10