Which of the following is true about transaction cost economics?
A) It is a theory that contends that an organization can, at least in part, create an environment for itself that is beneficial to the organization.
B) It is a theory that contends that organizations are very limited in their ability to adapt to the conditions around them.
C) It is a theory that examines the extent to which firms copy each other's strategies.
D) It is a theory that centers on whether it is cheaper for a firm to make or to buy the products that it needs.
E) It is a theory that contends that the possession of strategic resources can provide an organization with competitive advantages over its rivals.

Question

Quizplus · Accepted Answer

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

Which of the Following Is True About Transaction Cost Economics