Which of the Following Methods Might Be an Efficient Way

question 10

Multiple Choice

Which of the following methods might be an efficient way of obtaining inputs when specialized investments are not important?

• A)spot exchange.
• B)vertical integration.
• C)profit-sharing.
• D)long-term contracts.

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Definitions:

Future Value

The worth of an asset or cash on a future date that has the same value as a certain amount presently.

Present Value

A calculation that determines the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Usury Laws

Regulations governing the amount of interest that can be charged on a loan, intended to prevent lending at excessively high rates.

Nonmarket Rationing

Distribution of goods and services based on criteria other than price, such as need or merit.