The nonmarket transactions refer to:
A)purchases made in the spot market.
B)vertical integration.
C)short term contracts.
D)market power.

Question

Quizplus · Accepted Answer

Nonmarket transactions are transactions that are not conducted in the market through price mechanism. Vertical integration, where a firm owns or controls multiple stages of the production process, involves nonmarket transactions such as transferring goods or services within the same firm. Purchases made in the spot market and short term contracts are market transactions. Market power refers to a firm's ability to influence prices in the market, and is not related to nonmarket transactions.

The Nonmarket Transactions Refer To