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

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competitive model

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6 Terms

1

competitive model

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

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2

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.

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3

outside suppliers

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

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4

Market pricing

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

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5

Vertical integration

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

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6

Outsourcing

firm that buys inputs from outside suppliers

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