When the Transaction Costs of Operating Through the Market Are

question 20

Multiple Choice

When the transaction costs of operating through the market are too high:

• A) firms are more likely to grow vertically up or down the vertical chain.
• B) firms are less likely to internalize its transactions.
• C) firms will move from producing general assets to specific assets.
• D) contracts specified by the firm are more likely to be complete.

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Definitions:

Interpersonal Relations

It refers to the social and emotional interaction between two or more individuals in an organizational setting.

Task Demands

The physical, psychological, and social requirements of a job that employees need to meet to perform their roles effectively.

Job Design

The process of organizing tasks, duties, and responsibilities into a productive unit of work to enhance job satisfaction and performance.

Worker Satisfaction

The level of contentment employees feel towards their job, which can affect motivation, performance, and retention.