Transfer Pricing - Widener University

Transler PricingSuppose a company has 2 divisions: production and marketing. The production division

Transler PricingSuppose acompany has 2divisions: production and marketing. The production division's total 2 cost function is TC =150 +8Q +Q. The marketing P division's total cost function is TC =50 +4Q .The demand function for the final marketed product is P= 80 -Q . inf a. What are the marginal cost of production, the marginal cost of marketing, and the firm's (total) marginal cost? b. What are the total revenue and marginal revenue functions for the final product? c. What is the profit-maximizing level of output for the final product? d. What should be the price that transfers the product from production to marketing? e. What price should the firm charge for the final product? f. What is the firm's total revenue from sales of the final product? g. What is the total cost of producing and marketing the product? h. What is the firm's profit?