Chapter 18—Internal Markets Key
1. The market process is a
2. Central planners
3. In general, the structure of a business firm
4. Internal markets
5. Transfer prices should be set to so
6. An external market
7. BP has
8. Market prices
9. The way one unit of a firm relates to another in the same firm is referred to as being
10. If a firm decides to produce a product that it once purchased from a firm upstream it has made a
11. Firms have started to use ____ to solicit information about event that are important to them
12. In an unfettered free market, price is ____ predictor(s) of an event.
13. To create a market
14. All the costs of a transaction are referred to as
15. Internal markets
16. Internal markets
17. A new approach to management that uses market structures is
18. A market based firm
19. In a market based firm
20. PAM
21. Amazon.com claims that its average costs fall as it adds new product lines to its website. Amazon.com is
experiencing
22. Organizational structure forms evolved based on
23. Organizational structure can be a strategic asset if it
A. adds value.
24. The set of collectively held beliefs, values, and norms among the members of a firm that influence
individual behavior is referred to as
25. Research seems to suggest that corporate culture
26. Free competitive markets do not process information effectively.
27. Transfer prices can be set in such a way so as to maximize profits for an entire business.
28. Net marginal product is the reciprocal of marginal cost.
29. Prediction market in Scotland have been used to effectively forecast the outcome of elections in the United
States.
30. Price is the best predictor of an event.
31. Internal markets cannot suffer market failure like an external market.
32. Market-based management firms do not have structures like headquarters.
33. There is no need to allocate property rights in a market-based firm.
34. Relational contracts contract for every possible contingency
35. Managers need to enforce property rights inside a firm.