Examlex

Solved

Factors That Make It Difficult or Expensive to Change Suppliers

question 30

Multiple Choice

Factors that make it difficult or expensive to change suppliers or buyers are referred to as _____ costs.


Definitions:

Price

The amount of money required to purchase a good or service.

Demand

How much of a good or service buyers intend and can afford to buy across different prices within a set timeframe.

Marginal Revenue Product

The increase in revenue generated from the use of one more unit of a factor of production.

Perfect Competitor

A theoretical market structure where many firms sell identical products, allowing no single firm to influence market prices.

Related Questions