What is the relation between value creation and transactions cost?
What will be an ideal response?
Value is created when transaction costs for the producer and consumers are lowered. Managers can also devise newer products and strategies to reduce transactions cost and thereby create additional value.
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The above figure shows the U.S. market for wheat. When there no international trade, the U.S. price of wheat is ________ per ton and the U.S. equilibrium quantity is ________ tons
A) $14; 300,000 B) $14; 500,000 C) $16; 500,000 D) $16; 300,000 E) $16; 700,000
Using the above figure, the efficient amount of paper produced is
A) 60 million tons. B) 80 million tons. C) 100 million tons. D) 120 million tons.
Suppose the market price of corn is $5.50 per bushel. What are the three conditions that will need to be satisfied for the corn market to be in equilibrium at this price?
What will be an ideal response?
When we estimate a regression to determine the relationship between changes in consumption and changes in current income, we find that
A) there are no residuals. B) the R2 is zero. C) the MPC is larger than one. D) all of the above E) none of the above