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The Transferring Division of Pricey Corporation has variable costs of $25 per unit and fixed costs of $10 per unit. The market price for Transferring

The Transferring Division of Pricey Corporation has variable costs of $25 per unit and fixed costs of $10 per unit. The market price for Transferring Divisions goods is $50 per unit. Transferring Division sells its goods for $27 per unit. This would be an acceptable:

  1. Short-run price for external customers
  2. Long-run price for external customers
  3. Transfer price (no matter what)
  4. Transfer price (but only if there is unlimited demand on the market)
  5. Transfer price (but only if there is no demand on the market)

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