When a Firm Buys on the Marketplace What It Cannot

question 33

Multiple Choice

When a firm buys on the marketplace what it cannot make itself,the costs incurred are referred to as:

• A)switching costs.
• B)network costs.
• C)procurement.
• D)agency costs.
• E)transaction costs.

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Definitions:

Attractive Alternatives

Options that are appealing or desirable in comparison to others available, often considered in decision-making processes.

Weighing Facts

The process of assessing the importance, relevance, or truth of information or evidence before making a decision or judgment.

Cognitive Dissonance Theory

A theory suggesting that individuals experience discomfort when holding two or more conflicting cognitions, leading them to change their attitudes, beliefs, or actions to reduce the dissonance.

Human Consistency

The tendency of an individual to maintain the same behaviors, attitudes, and beliefs over time.