All of the Following Are True Regarding a Long- Term

question 41

Multiple Choice

All of the following are true regarding a long- term contract between an upstream firm and a downstream firm except which one?

• A)The downstream firm can incur opportunity costs.
• B)Both firms have increased flexibility.
• C)The upstream firm can incur opportunity costs.
• D)Changes in market conditions can impose new costs to either firm.

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Definitions:

Mean

The average of a set of numbers, calculated by dividing the sum of these numbers by the count of numbers in the set.

Quotient

The result obtained by dividing one quantity by another.

Rounded

The process of adjusting numbers to a specified degree of precision, often to make them simpler or more easily interpreted.

Mean

The mean of a collection of numbers, determined by summing up all the numbers and then dividing by the total number of numbers.