What transfer price would result in the nfl network earning

Assignment Help Business Economics

Reference no: EM133365041

Question: The NFL Network broadcasts special programs created by NFL Films. The firms are independently owned and operated. NFL Films sells only to the NFL Network. The NFL Network then licences its broadcasts to international cable networks to be shown worldwide.

The Network's demand for films is PN = 400,000 - 200Q. The Network pays NFL Films a price PF for each film and adds $100,000 for each film to get it ready to air. It also has FCN = $200,000.

NFL Films has MCF = $260,000 and FCF = $100,000. Since it sells only to the NFL Network, its demand is the same as the Network's demand and so QN = QF = Q.

Suppose the two firms vertically integrate. What transfer price would result in the NFL Network earning zero in profit?

Reference no: EM133365041

Questions Cloud

Evaluate the business-level strategy : Evaluate the business-level strategy of either Starbucks or Lockheed Martin to determine whether the strategy is appropriate to offset forces in the industry.

What is the probability that she paid cash : The credit department of Lion's Department Store in Anaheim, California, reported that 28% of their sales are cash, 24% are paid with a credit card, and 48%

Evaluate the current operations strategy for decision-making : POM 310 Production & Operations Management - evaluate the current Operations Strategy for decision-making in an organization of your choice

How much should this firm produce to maximize lis profit : Suppose that the firm's demand curve is given by p 60-20. How much should this firm produce to maximize lis profit?

What transfer price would result in the nfl network earning : Suppose the two firms vertically integrate. What transfer price would result in the NFL Network earning zero in profit?

How is the new tariff expected to affect us consumers : Identify and explain the major differences between the (Ricardian) Theory of Comparative Advantage and the (Heckscher-Ohlin) Factor Endowments Theory.

Develop response strategy for one of the negative risks : Develop a response strategy for one of the negative risks and one of the positive risks. Enter the information in the risk register.

Customer errors of omission or commission : which the consulting team should have picked up on, and what could they have done related to the customer's errors of omission or commission?

Characteristics of typical programmable logic control device : Programmable Logic Controllers - evaluate the design characteristics of typical programmable logic control devices

User Account

All Pages