If the managers of Happy Avocados, a ready- made guacamole firm, spend considerable time researching different prices and quality measures offered by multiple avocado farmers, the time spent is considered to be a(n)______cost.
A)monitoring
B)enforcement
C)information
D)negotiation

Question

Quizplus · Accepted Answer

The cost that is incurred by Happy Avocados when researching different prices and quality measures offered by multiple avocado farmers is considered to be an information cost. The managers are investing their time and effort into gathering the necessary information to make informed decisions about which farmer to select. This cost is not related to monitoring, enforcement, or negotiation.

If the Managers of Happy Avocados, a Ready- Made Guacamole