Chapter 14 - Transaction Costs, Imperfect Information, and Behavioral Economics

competitive model

The ________ implies that all market players are fully informed on the prices and availability of all inputs, outputs, and manufacturing processes.

individual contribution

When the expenses of locating acceptable inputs and bargaining for each ________ are considerable, the customer saves money by buying the final product from a company.

outside suppliers

The term* outsourcing* refers to a firm that buys inputs from ________.

Market pricing

________, on the other hand, coordinates transactions between businesses, whereas managers coordinate activity inside enterprises.

Vertical integration

________ refers to a company's growth into phases of manufacturing that are sooner or later than its core competencies.

Outsourcing

firm that buys inputs from outside suppliers