Markets Reduce Transactions Costs

question 94

Multiple Choice

Markets reduce transactions costs:

• A)by decreasing the time spent searching for information about goods and services.
• B)only when they have a highly structured set of rules like the New York Stock Exchange.
• C)because each market uses the same set of rules for buying and selling goods and services.
• D)only when the government coordinates the plans of many buyers and sellers.
• E)when prices are set by the sellers and are not determined by negotiation between the buyers and the sellers.

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Definitions:

Quality

Good or service that is free of deficiencies.

Prices

The amounts of money expected, required, or given in payment for something.

Dependability of Delivery

The reliability with which a company or supply chain delivers products or services to its customers in the promised time frame.

Competing Companies

Businesses that operate in the same market or industry and vie for the same customer base, market share, or resources.