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If the external market for an intermediate product is imperfectly competitive, then the transfer price should be set equal to:?

 a. the market price of the intermediate product. 

 b. the marginal cost of producing the optimal quantity of the intermediate product. 

 c. the market price of the final product. 

 d. None of the above is correct. 

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/07/23
Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

  1. The correct answer was: b. the marginal cost of producing the optimal quantity of the intermediate product.. the marginal cost of producing the optimal quantity of the intermediate product. 

Nasir Hussain
by Nasir Hussain , Sales And Marketing Manager , Pakistan Pharmaceutical Products Pvt. Ltd.

 b. the marginal cost of producing the optimal quantity of the intermediate product. ...................................................................................................................

Sashikanta Mohapatra
by Sashikanta Mohapatra , Manager - Business Development/Sales Process Deployment , Vodafone Spacetel Limited

It's the2nd option....Option B.

b. the marginal cost of producing the optimal quantity of the intermediate product

Khaled Anwar
by Khaled Anwar , Senior Sales Engineer , "Automotive company''

The answer is : Option ( b ) 

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

 the marginal cost of producing the optimal quantity of the intermediate product. ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Yaqoub Alomar
by Yaqoub Alomar , Civil Engineer , Al-Zubeir municipality

I agree with the majority 

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Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

My Answer Is Option " B " .....

 

Debu Debu Nath
by Debu Debu Nath , Executive , Bikroy.com

There answer is "C", bcz when we calculate the transfer pricing we allows take final product market price

Salvatore Augello
by Salvatore Augello , owner , A.S. Trade & Consult

answer B _______________________________________