Spot Markets Are an Efficient Way for the Firm to Purchase

question 150

Multiple Choice

Spot markets are an efficient way for the firm to purchase inputs if:

• A) opportunism is not a problem.
• B) suppliers engage in hold-up.
• C) profit sharing is used to compensate managers.
• D) the supplier needs specialized investment to produce the input.

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Definitions:

Charles Finney

A leader in the Second Great Awakening in the United States, known for his role in the development of modern revivalist evangelism.

Religious Reformer

An individual who seeks to bring about change within a religious institution or practices, often advocating for modernization, moral improvement, or a return to foundational principles.

Second Great Awakening

A period of religious revival in the United States that began in the late 18th century and continued into the early 19th century, characterized by widespread revivals and a strong sense of social justice and reform.

Social Reform

The process of enacting measures and changes in society with the intention of improving conditions and correcting injustices, often focusing on issues like poverty, education, and public health.