Behaving Ethically Can Reduce Transaction Costs Through the Reputation Effect

question 7

True/False

Behaving ethically can reduce transaction costs through the reputation effect.

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Definitions:

Competition

The rivalry among businesses to attract customers and gain market share, driving innovation, efficiency, and lower prices.

Service Industries

Sectors of the economy that provide intangible goods or services, such as healthcare, education, and finance.

American Firms

Companies or corporations that are registered and operate in the United States, contributing to its economy.

Justice Department

A federal executive department of the U.S. government responsible for the enforcement of the law and administration of justice.