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

question 151

Multiple Choice

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

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

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Definitions:

Organizational Culture

The shared values, beliefs, and practices that characterize an organization and influence its members' behavior.

Persuasive Message

Communication designed to influence or change the receiver's thoughts or actions.

Hard-sell Approach

A direct and forceful sales technique that aggressively pushes the product or service on the customer.

Common Mistakes

Frequently occurring errors or oversights that people tend to make in various contexts.