Which of the Following Is an Example of an External

question 2

Multiple Choice

Which of the following is an example of an external transaction cost?

• A) The cost of setting up a production unit
• B) The cost of searching for a contract manufacturer
• C) The cost of recruiting and retaining employees
• D) The cost of maintaining plant and machinery

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Definitions:

Adopted Children

Children who are legally taken and raised by parents who are not their biological parents.

Cross-national Differences

Variations in cultural, economic, social, or political aspects observed between different countries or nations.

IQs

Short for Intelligence Quotients, a measure of a person's cognitive abilities in relation to their age group, expressed as a numerical score.

Premises

Premises refer to statements or ideas assumed to be true and used as the basis for constructing an argument or reasoning.