Which of the Following Is Not a Disadvantage of Transactional

question 21

Multiple Choice

Which of the following is not a disadvantage of transactional relationships?

• A) Potential for communication difficulties
• B) Expediting and monitoring of incoming quality
• C) Inflexible when flexibility may be required
• D) No inspection needed due to low prices
• E) Tend to result in more delivery problems

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Definitions:

Marginal Costs

The amount spent to produce a further unit of a good or service.

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or service is not achieved or is not achievable.

Coefficient Of Monopsony

A measure indicating the degree of market power held by a single buyer in a market.

Elasticity Of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good, with higher elasticity indicating a greater response.