An external market transaction in which firms buy and sell technology is called market imperfections.

Question

Quizplus · Accepted Answer

The statement in the question is incorrect. An external market transaction in which firms buy and sell technology is called a technology market transaction or a technology trade. Market imperfections refer to situations where the market fails to efficiently allocate resources, such as monopolies or information asymmetry. Market imperfections refer to situations where there are barriers or obstacles to the free flow of goods, services, or information in a market. The buying and selling of technology between firms is a normal market transaction and not considered a market imperfection.

An External Market Transaction in Which Firms Buy and Sell