Private Solutions May Not Be Possible Due to the Costs

question 459

Multiple Choice

Private solutions may not be possible due to the costs of negotiating and enforcing these solutions. Such costs are called

• A)transaction costs.
• B)corrective costs.
• C)input costs.
• D)private costs.

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Definitions:

ADR

Stands for Alternative Dispute Resolution, which encompasses various methods for resolving disputes outside the traditional court system, such as mediation and arbitration.

Flexibility

The ability to adapt to changes, adjust to new conditions, or modify something to fit different circumstances.

Legality

The state or condition of being in accordance with the law or legal requirements.

Alternative Dispute Resolution

A range of procedures, such as mediation and arbitration, used to resolve disputes without resorting to traditional court litigation.