________ refers to the price charged for products sold to a subsidiary to a multinational corporation b another subsidiary in another country?
Correct answer: D. transfer pricing
- A. marginal cost pricing
- B. full cost pricing
- C. price discrimination
- D. transfer pricing
Explanation
Transfer pricing is the price charged for goods, services, or inputs exchanged between related companies within the same multinational enterprise. It may apply to transactions between a parent company and its subsidiary or between subsidiaries.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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