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The Acme Oil Company is a vertically integrated firm. It explores for and extracts crude oil. It ...

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The Acme Oil Company is a vertically integrated firm. It explores for and extracts crude oil. It ...

The Acme Oil Company is a vertically integrated firm. It explores for and extracts crude oil. It also refines the crude oil into gasoline and other products, and sells these products to consumers. The internal price that Acme Oil uses when the crude oil that it extracts is "sold" to one of its refineries is called:
A) the shadow price.
B) the transfer price.
C) the market price.
D) the non-market price.
E) none of the above

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Microeconomics

Edition: 8^th

Author: Pindyck

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nakungth Author

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