How do buyers and sellers benefit from a contract?
More value might be created if a buyer agrees to limit his ability to deal with different producers or if a seller agrees not to deal with customers other than this particular buyer. The agreement can give the seller the benefits of steady operation, avoiding the costs of shutting down and restarting production unpredictably. The buyer can benefit because a contract that ensures deliveries at predictable prices allows him to make more competitive price and delivery commitments to his own customers.
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Monetary freedom refers to:
a. the ability to create and operate an enterprise easily. b. the absence of tariff and non-tariff barriers that affect imports of goods. c. the tax burden and overall tax revenue of the government. d. price stability with an assessment of price control. e. the free flow of foreign capital.
The average level of tariffs on imported products charged by industrialized countries changed between 1946 and 1990
a. from 5 percent to 40 percent. b. from 40 percent to 5 percent. c. from 10 percent to 20 percent. d. from 20 percent to 10 percent.
Suppose that for a particular business there are no implicit costs. Then
a. accounting profit will be greater than economic profit. b. accounting profit will be the same as economic profit. c. accounting profit will be less than economic profit. d. the relationship between accounting profit and economic profit cannot be determined without more information.
Jasmine has recently moved to Florida because she loves the warm climate there. Being new to the area, she will need to spend a few weeks looking for a new job. This is an example of:
a) frictional unemployment. b) cyclical unemployment. c) structural unemployment. d) underemployment.