If the Quality of an Input Is Easily Determined at the Time

question 12

Multiple Choice

If the quality of an input is easily determined at the time of purchase,then it is likely to _____

• A)result in high transaction costs of using markets.
• B)encourage horizontal integration of the production process.
• C)encourage supplier firms to produce low-quality inputs.
• D)be produced internally by a firm.
• E)be purchased in the market.

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Definitions:

Withdrawal

The act of removing oneself from participation in something, such as withdrawing money from a bank or withdrawing from social activities.

Likelihood

The probability or chance that a particular event will occur.

Workforce Diversity

Refers to a variety of differences among people in an organization, encompassing race, gender, age, religion, sexual orientation, and other dimensions.

Applied Sociology

The practice of using sociological principles, theories, and research to solve social problems and improve society.