Question 31

31.In analyzing transfer prices,

a.The buyer will not willingly purchase a product for less than the incremental costs incurred to make the product + opportunity cost.

b.The seller will not willingly sell a product for less than the incremental costs incurred to make the product + opportunity cost.

c.The buyer will willingly pay more than the ceiling (maximum) transfer price.

d.The buyer will not pay less than the ceiling (maximum) transfer price.