If the Costs of Negotiating and Enforcing Contracts Are _____

question 9

Multiple Choice

If the costs of negotiating and enforcing contracts are _____ relative to the benefits, buyers and sellers have incentives to make economically efficient arrangements that _____ value.

• A)high; increase
• B)low; increase
• C)high, decrease
• D)low; decrease

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Definitions:

Hinge Joint

A type of joint that allows motion in one plane, similar to the movement of a door hinge, such as the elbow or knee.

Saddle

A supportive structure placed on the back of an animal for riding or an engineering component designed to spread load.

Longitudinal Axis

An imaginary line running from the top to the bottom of an object, defining its vertical orientation.

Rotation

The act of turning around an axis or center point.