When an organization relies on a small number of trading partners,
A)the risk of opportunism increases.
B)bounded rationality decreases.
C)bounded rationality increases.
D)the risk in investing in specific assets decreases.

Question

Quizplus · Accepted Answer

When an organization relies on a small number of trading partners, the risk of opportunism increases because those partners may exploit the dependency for their own benefit.

When an Organization Relies on a Small Number of Trading