Hi, I have been reading Technical article on ' Transfer Pricing ' But, I could not understand this. please explain so that i may understand." We have assumed here that production constraints will result in fewer sales of the same product to external customers. This may not be the case; perhaps, instead, production would have to be moved away from producing a different product. If this is the case the opportunity cost, being the contribution foregone, is simply the shadow price of the scarce resource."
