Spot Markets Are an Inefficient Way for the Firm to Purchase

question 14

Multiple Choice

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

• A)opportunism is a problem.
• B)suppliers engage in hold-up.
• C)profit-sharing is used to compensate managers.
• D)opportunism is a problem and suppliers engage in hold-up.

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Definitions:

Urinary

Relating to urine or the organs of the urinary system, which includes the kidneys, ureters, bladder, and urethra.

Acidity

A measure of the concentration of hydrogen ions in a solution, reflecting its ability to donate protons and determining its pH level.

Alkalinity

the measure of the capacity of water or a solution to neutralize acids, often indicated by its pH level.

Concentration

In chemistry, the measure of the amount of a given substance contained in a unit volume of a liquid or solid material.