Assume that a multinational company produces components in ...

[karateprodigy]

Assume that a multinational company produces components in country A and ships them to a subsidiary in country B. In order to increase its profits
 
  A) the company should charge a high transfer price for the components if income taxes in country B are higher than in country A.
  B) the company should charge a low transfer price for the components if income taxes in country B are higher than in country A.
  C) the company should charge a high transfer price for the components if income taxes in country A are higher than in country B.
  D) None of the above

Question 2

There are 10 identical internet service providers (ISPs) in a city serving a market demand with an elasticity of -1.5. The elasticity of supply for each firm is 3.0. The elasticity of demand faced by an individual ISP is
 
  A) -42.
  B) -15.
  C) -1.5.
  D) -27.

[wfdfwc23]

Answer to Question 1

A

Answer to Question 2

A

[karateprodigy]

Thanks for the timely response, appreciate it

[Jossy]

Gracias!