Which of These Is an Important Determinant of Contract Duration

question 17

Multiple Choice

Which of these is an important determinant of contract duration as suggested by the economic models on franchise contracts?

• A)Asset ownership
• B)Market power
• C)Residual rights
• D)Recontracting costs

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Definitions:

Firm

An organization that uses resources to produce goods or services for profit in an economic system.

Goods

Items or products that are produced to satisfy wants or needs of consumers. Goods can be tangible, like food and cars, or intangible, like services.

Services

Intangible and non-physical goods provided by individuals or companies, such as healthcare, education, and financial consulting.

Total Product

The total quantity of output produced by a firm or economy as a result of its production process.