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Satsume Satsume
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6 years ago
Halifax & Smyth (H&S) is a clothier that specializes in expensive men's suits, and the firm makes the suits from wool fabrics that are woven by one of the firm's divisions.  This division is the only source for this material, and H&S uses the optimal transfer price to determine the value of the wool fabric.  What happens if the marginal cost of assembling the men's suits increases?
A) The net marginal revenue (NMR) curve for wool fabric shifts upward, and wool (suit) production increases.
B) The net marginal revenue (NMR) curve for wool fabric shifts upward, and wool (suit) production decreases.
C) The net marginal revenue (NMR) curve for wool fabric shifts downward, and wool (suit) production increases.
D) The net marginal revenue (NMR) curve for wool fabric shifts downward, and wool (suit) production decreases.
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Microeconomics

Microeconomics


Edition: 8th
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boransalboransal
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Satsume Author
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Thanks for your help!!
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