Division y of the same company would like to purchase 10,075 units each period from division x. division y now purchases the part from an outside supplier at a price of $32 each. suppose division x has ample excess capacity to handle all of division y's needs without any increase in fixed costs and without cutting into sales to outside customers. if division x refuses to accept the $32 price internally and division y continues to buy from the outside supplier, the company as a whole will be?

Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.