High Transactions Costs

question 78

Multiple Choice

High transactions costs

• A)occur when specialized investment is not important.
• B)make spot exchange an efficient way to obtain inputs.
• C)may be a result of buyer opportunism.
• D)may be the result of downward-sloping demand.

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Definitions:

Assigned Cycle Time

The preset duration within which a particular task or operation must be completed in a production process.

Efficiency

The ability to accomplish a task or goal with a minimum expenditure of time, effort, and cost, often evaluated in terms of productivity.

Cycle Time

The total time from the beginning to the end of a process, including both processing and waiting times.

Daily Operating Time

The total time per day during which a business or system is operational and open for business.