A firm has a division that produces X, whose total costs are TC = 10 + Q2 (where Q is the quantity of X). The marketing division adds its own total costs of 5 + 3Q. In the competitive external market for X, the wholesale price is $10. The transfer price of X should be:
a. $2.
b. $5.
c. $10.
d. $12.
e. $15.
Thank you for your help with this problem!