Which of the Following Features of Transactions Make Those Transactions

question 11

Multiple Choice

Which of the following features of transactions make those transactions excellent candidates for alliances?

• A)The transaction involves impediments to comprehensive contracting
• B)The transaction is complex,not routine.
• C)The transaction involves the creation of relationship-specific assets by both parties in the relationship,and each party to the transaction could hold up the other
• D)It is excessively costly for one party to develop all the necessary expertise to carry out all the activities itself
• E)All of the above

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Definitions:

Nonrival Good

Good for which the marginal cost of its provision to an additional consumer is zero.

Marginal Social Cost

The additional cost to society of producing one extra unit of a good or service, considering both private costs and externalities.

Marginal Private Cost

The additional cost incurred by the producer for producing an extra unit of a good, not considering external effects.

Equilibrium

A state where market supply and demand balance each other, and, as a result, prices become stable.