When the Ownership of the Different Stages of Production of a Commodity

question 24

Multiple Choice

When the ownership of the different stages of production of a commodity lies with different individuals, it becomes difficult to take decisions on capacity expansion because of all the following reasons, EXCEPT:

• A)differences in attitudes toward risk.
• B)differences in motivation.
• C)different degrees of risk exposure.
• D)different abilities to hedge themselves.

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Definitions:

Certainty

The state of being completely confident or having no doubt about something.

Car Rental

A service industry that provides temporary vehicles for use by customers, typically on a short-term basis.

Limited Search

The act of conducting a search or investigation with restricted scope or effort, often due to constraints such as time or resources.

Adequate

Adequate means sufficient for a specific requirement or to meet the needs effectively without being excessive.