Factors that make it difficult or expensive to change suppliers or buyers are referred to as _____ costs.

Question

Quizplus · Accepted Answer

The factors that make it difficult or expensive to change suppliers or buyers are referred to as switching costs. Option A (transactional costs) refers to the costs associated with making a transaction or conducting business, Option B (opportunity costs) refers to the potential benefits that are foregone when choosing one option over the other, and Option C (marginal costs) refers to the cost of producing an additional unit of a product or service. Therefore, D (switching costs) is the correct answer.

Factors That Make It Difficult or Expensive to Change Suppliers