If Mario's Pizza, a large frozen pizza distributor, builds a tomato sauce plant near Red Tomatoes, a large tomato farm, to reduce the costs of transporting fresh tomatoes, the tomato sauce plant is a(n) ________.

A) negotiation cost
B) monitoring cost
C) information asset
D) transaction-specific asset


D) transaction-specific asset

Economics

You might also like to view...

Allocative efficiency

a. is important for economic theory but not relevant to environmental policy b. calls for the equality of additional benefits and additional costs c. is automatically achieved when cost-effectiveness is achieved d. requires that the total costs to society linked to environmental policy are equivalent to the associated total benefits

Economics

In a demand-pull inflation, if the Fed stops expanding the quantity of money,

A) a cost-push inflation will occur. B) government expenditure will cause the demand-pull inflation to continue. C) a deflation will occur. D) the demand-pull inflation ends. E) None of the above answers is correct.

Economics

The long boom ended in

A) 1999. B) 2001. C) 2008. D) 2012.

Economics

A production possibilities curve with clothing and food on the axes shows that

I. A society can not have an unlimited amount of each good II. For an efficient society, an increase in clothing production will necessitate a decrease in food production III. A society will always produce the maximum amount of both clothing and food A) I only B) II only C) III only D) Both I and II

Economics