A multinational corporation has two semiautonomous divisions: production and marketing. The production division manufactures a product that is purchased and then resold by the marketing division. The marginal cost functions for the production division and for the value added by the marketing division are defined below.

MCp=production division MCm=Marketing

MC_p=200+3Q

MC_m=4Q

The demand function for the final product is:

Q_d=600-P

Assume that the external market for the output of the production division is perfectly competitive and that the market price is $300.

How many units should be produced by the production division________?

How many units should be purchased by the marketing division_________?

What transfer price should be paid to the production division by the marketing division_________?

What price should be charged for the final product by the marketing division___________?