Which of the following theories for explaining a firm's competitiveness centers on just one element of business activity: whether it is cheaper for a firm to make or to buy the products that it needs?
A) Resource-based theory
B) Enactment
C) Transaction cost economics
D) Environmental determinism
E) Institutional theory

Question

Quizplus · Accepted Answer

Transaction cost economics focuses on the cost of transactions and whether it is more cost-effective for a firm to produce goods internally or to purchase them from external sources.

Which of the Following Theories for Explaining a Firm's Competitiveness