The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as
A) switching costs.
B) transaction costs.
C) procurement.
D) agency costs.

Question

Quizplus · Accepted Answer

The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as transaction costs. These costs include search and information costs, negotiation costs, contract costs, and enforcement costs.

The Costs Incurred When a Firm Buys on the Marketplace