<span>A situation in which quantity demanded is greater than quantity supplied best describes shortage. Shortage is when any product or service lacks the means to provide or satisfy its demand. A shortage in the product or service usually results to a price increase. On the other hand, a surplus results to a price decrease.</span>
Answer:
The minimum transfer price that the Alabama Division should accept is $60 per unit.
Explanation:
The division providing the goods internally often has the opportunity to sell these same goods externally instead and so the minimum they will be willing to charge another division is cost plus their profit margin (i.e. the minimum they would normally charge an external customer).
the minimum price to be charged is :
Variable cost per unit = $24
Fixed Cost per unit = $15
Total Cost per unit = $39 and the profit margin when added makes its selling price to be equal to $60 (i.e. the price which is to be charged from outside customers).
Alabama Division will cover its minimum opportunity cost i.e. its sales price to the external customers which it will charge from Arkansas division .
Minimum transfer price = $60 per unit.
Therefore, The minimum transfer price that the Alabama Division should accept is $60 per unit.
Answer:
The correct answer is A. is weak in local responsiveness.
Explanation:
The global division by products is an organizational structure that extends worldwide the responsibilities of the domestic product divisions. The growth of international business and the diversity of products make it advisable that each product line is also responsible for its international operations, without having to delegate to an international division.
Answer:
a.
Explanation:
Correct option is > a. If the marginal investor becomes more risk averse, the required return on Stock B will increase by more than the required return on Stock A.
Reason: Required rate Stock B will increase so that to attract new investors for stock B and make returns more rational against associated risk.
Answer:
de-industrialization
Explanation:
De-industrialization is a process in which there is a shift of industries from an economy.
It is not necessary that the industry is then relocated somewhere else.
But it does not work any further in the city it is setup. Here also, the factory is closed in South Carolina. That is de-industrialization in the current city.
Although, the industry is setup in Malaysia, but the company do not work in its earlier location. And it has shifted from original location.
Thus, it is a case of de-industrialization.
