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Sir please tel me whether I am right in the following, if not then please rectify me:
1)In case of transfer pricing if there is unlimited production capacity/resources and limited external demand then the Min. transfer price would be greater than MC and Max transfer price would be lower of NMR and external purchase cost, right?
2)If there is unlimited production capacity/resources and unlimited external demand then Minimum transfer price is marginal cost and maximum transfer price is lower of NMR and any external purchase price, right?
3)If there is limited production capacity/resources and limited external demand then Minimum transfer price is marginal cost plus any lost contribution and maximum transfer price is lower of NMR and any external purchase price, right?
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