Which of the Following Statements Is FALSE

question 16

Multiple Choice

Which of the following statements is FALSE?

• A)Long-term supply contracts cannot be entered into anonymously;the buyer and seller know each other's identity.This lack of anonymity may have strategic disadvantages.
• B)A futures contract is an agreement to trade an asset on some future date,at a price that is locked in today.
• C)An alternative to vertical integration or storage is a long-term supply contract.
• D)Long-term supply contracts are unilateral contracts negotiated by a seller.

---

Definitions:

Coincidence-of-Wants Problem

Refers to the difficulty in barter transactions where each party needs to have what the other wants and be willing to trade for it simultaneously.

Trade by Barter

The exchange of goods or services between parties without the use of money as a medium of exchange.

Capital Goods

Long-term assets such as buildings, machinery, and equipment used by businesses to produce goods and services.

Division of Labor

Division of labor is the assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.