A Group of Business People Are Having Coffee

question 107

Multiple Choice

A group of business people are having coffee. Which of the following quotations describes transactions costs?

• A)"The new production process we've installed uses less capital and labour than the old one."
• B)"The new assembly line has higher capital costs, but the fall in workers' hours has lowered overall costs."
• C)"The costs of per-unit production have fallen dramatically as we have increased the length of the production runs."
• D)"Despite the higher costs of negotiating the contracts, hiring the cleaning firm is much cheaper than using our own staff."
• E)"The computer servicing people we have hired work very well as an integrated problem-solving group."

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Definitions:

Benzoyl Chloride

A reactive organic compound used in organic synthesis, characterized by a benzene ring attached to a carbonyl chloride group.

Pka Values

A quantitative measure that indicates the strength of an acid in solution, representing the acid's ability to donate a proton.

Equilibrium

A state in a chemical reaction where the rates of the forward and reverse reactions are equal, leading to no net change in the concentrations of reactants and products.

Aldol Condensation

A chemical reaction that combines two aldehyde or ketone molecules to form a larger β-hydroxyketone, followed typically by dehydration to yield a conjugated enone.