When Buyers Cannot Easily Monitor Supplier Performance,the Supplier Might Shirk

question 118

Multiple Choice

When buyers cannot easily monitor supplier performance,the supplier might shirk or cheat and not deliver the expected value.________ is "some form of cheating or undersupply relative to an implicit or explicit contract."

• A) Institutional sale
• B) Opportunism
• C) Business buying
• D) Vertical integration
• E) Contractual transactionism

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Definitions:

Elastic Demand

A condition where the quantity demanded of a good or service significantly changes due to a change in its price.

Inelastic Demand

A market scenario where the quantity demanded of a good or service changes minimally in response to price changes.

Perfectly Inelastic

A situation where the quantity demanded or supplied of a good does not change regardless of the changes in its price.

Perfectly Elastic

A situation in economics where the demand or supply for a good is completely responsive to changes in price, resulting in an infinite elasticity.