Which of the following is an example of a one-time investment made by a seller to reduce the transaction cost on all units of output?
A)Providing customers a wide range of products
B)Hiring a distribution agency
C)Merging with its rival brand
D)Creating a brand name which signals quality

Question

Quizplus · Accepted Answer

Creating a brand name which signals quality is an example of a one-time investment that can reduce transaction costs on all units of output. This is because when customers recognize and trust a brand, they are more likely to make repeat purchases without the need for extensive advertising or persuasion. Meanwhile, providing a wide range of products, hiring a distribution agency, and merging with a rival brand all involve ongoing expenses and may not necessarily reduce transaction costs for all units of output.

Which of the Following Is an Example of a One-Time