Spot markets are generally preferable to:
A) long-term contracts.
B) short-term contracts.
C) vertical integration.
D) None of the answers are correct.

Question

Quizplus · Accepted Answer

Spot markets are not inherently preferable to long-term contracts, short-term contracts, or vertical integration. The preference depends on the specific circumstances, such as the need for price stability, supply security, and transaction costs. Each option has its advantages and disadvantages depending on the context.

Spot Markets Are Generally Preferable To