Markets Reduce Transactions Costs

question 156

Multiple Choice

Markets reduce transactions costs

• A)by decreasing the time spent searching for information about goods and services
• B)only when they have a highly structured set of rules like the New York Stock Exchange
• C)because each market uses the same set of rules for buying and selling goods and services
• D)only when the government can coordinate the plans of many buyers and sellers
• E)when prices are set by the sellers and are not determined by negotiation between the buyers and the sellers

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Definitions:

Sales Dollars

The total monetary value of all sales transactions made by a company within a given period.

Town Division

A specialized segment within a larger organization or a local government area, focused on managing and providing services to a specific geographic area.

Country Division

A segment or unit of a company that operates in a specific country, responsible for tailoring operations to the local market.

Fixed Expenses

Costs that do not change with the level of production or sales, such as rent and salaries.