Economic value of a transaction where the buyer is allowed to deal with several sellers at the same time will always be higher than a transaction which ties the buyer to a particular seller by contract.

Question

Quizplus · Accepted Answer

The economic value of a transaction is not solely determined by the buyer's ability to deal with multiple sellers; it also depends on factors like the terms of the contract, the quality and price of goods or services, and the negotiation power of both parties. A contract tying a buyer to a particular seller could potentially offer better terms, such as lower prices or higher quality services, which might increase the transaction's economic value compared to a situation with multiple sellers.

Economic Value of a Transaction Where the Buyer Is Allowed