The USEconomy Is Not a Perfectly Competitive Market

question 2

True/False

The U.S.economy is not a perfectly competitive market.There are costs associated with negotiating contracts,enforcing agreements,taxes and less than perfectly competitive firms.Nevertheless,according to Wallis and North (1986),the U.S.economy has grown in the presence of these transaction costs and these costs have risen sharply as a percentage of GDP between 1890 and 1970.

---

Definitions:

Information Flows

The movement of information within and between entities, ensuring that data reaches the intended audience efficiently.

Formal Channels

The official pathways for communication within an organization, typically delineated by organizational charts and policies.

Informal Channels

Do not follow the chain of command.

Low-context Culture

Cultures where communication is explicit, messages are direct, and understanding is based on verbal expression.