​When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market

A) ​It is appropriate to ignore that the market price includes a margin above marginal cost
B) It is OK if the product on the market includes costly features your downstream division does not use
C) It is OK if the product on the market is inexpensive because its quality is lower than you use
D) ​If it is similar enough,it calls into question whether there are gains from producing it in-house

If the intermediate good is similar enough to a product already available on the market, it suggests that there may not be any significant gains from producing it in-house. Therefore, setting the transfer price at the market price is appropriate in order to ensure that the downstream division is not disadvantaged by higher costs. However, it is important to consider any differences in features and quality between the market product and the in-house intermediate good, as these may affect the transfer price calculation. It is also important to consider any margins above marginal cost that may be included in the market price.