In Which Situation Are Transaction Costs Most Likely to Be

question 37

Multiple Choice

In which situation are transaction costs most likely to be the lowest?

• A) Rodney buys antiques; he is currently looking for an eighteenth-century table.
• B) Cathy is looking for someone who is willing to trade accounting services (in return)for law services.
• C) Rodriguez wants to buy a house with two master bedrooms.
• D) Melinda wants to buy a McDonald's Big Mac (she will not be asking for a special order).

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Definitions:

Virtual Teams

Groups of individuals who work together from various geographic locations and rely on communication technology to collaborate.

Flatter Organization

An organization with fewer hierarchical levels, promoting better communication, quicker decision-making, and often higher employee morale.

Self-managed Teams

Groups of workers who are given administrative oversight for their task domains, including planning and scheduling of work, the allocation of resources, and the operation of their work processes.

Self-managed Team

A group of employees who are provided with the autonomy to manage their work and make decisions without direct supervision.