In Practice, the Cost Minimization Strategy Can Be More Expensive

question 123

Multiple Choice

In practice, the cost minimization strategy can be more expensive than the opportunity maximization strategy. Which of the following is a way in which the cost minimization strategy is less expensive than the opportunity minimization strategy?

• A) The loss of unexpected opportunities
• B) The cost of extensive monitoring mechanisms
• C) The costs of writing detailed contracts
• D) The prevention of opportunistic behavior by the partner(s)

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Definitions:

Construct System

A psychological concept that refers to the collection of cognitive structures an individual uses to interpret and predict events in the world.

Emotional State

The current condition of a person’s emotions or feelings which can affect perception, behavior, and physical responses.

Personal Characteristics

Traits or attributes that define an individual's personality and behavior.

Organic Brain Damage

Physical damage to the brain's structure that can affect cognitive, emotional, and physical functions, often resulting from injury or illness.