Division a, which is operating at capacity, produces a component that currently sells in a competitive market for $25 per unit. at the current level of production, the fixed cost of producing this component is $8 per unit and the variable cost is $10 per unit. division b would like to purchase this component from division a. the price that division a should charge division b for this component is:

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.