The More Complicated the Process Used to Produce a Good,_____

question 48

Multiple Choice

The more complicated the process used to produce a good,_____

• A)the greater the transaction costs of organizing production through markets.
• B)the lower the transaction costs of organizing production through markets.
• C)the less likely a firm will use administrative controls to organize the production process.
• D)the more likely a firm will use the market to organize the production process.
• E)the more likely that consumers will choose to purchase the good over other alternatives in the market.

---

Definitions:

Wrong Rate

The incorrect or inappropriate pricing rate applied to a service, product, or financial transaction.

Licensing

The act of granting permission to use intellectual property rights, such as patents or trademarks, under agreed terms and conditions.

Foreign Distribution Agreements

Contracts between companies for the distribution of goods or services in countries other than their own.

Merchandise

Goods that are bought and sold in commerce; typically refers to the items stocked and offered for sale by a retail or wholesale business.