Costs to the firm arising from reaching agreements on input ...

[bucstennis@aim.com]

Costs to the firm arising from reaching agreements on input prices with suppliers and then ensuring that terms of agreements are fulfilled, are called
 
  A) negotiation costs.
  B) agency costs.
  C) transactions costs.
  D) implicit costs.

Question 2

Suppose firms in a perfectly competitive industry are making economic profits. As a result I. new firms enter the industry. II. the market price falls. III. the economic profits of the existing firms decrease.
 
  A) I, II and III
  B) I and II
  C) II and III
  D) I and III

[nikmaaacs]

Answer to Question 1

C

Answer to Question 2

A

[bucstennis@aim.com]

Thanks for the timely response, appreciate it

[tkempin]

Great answer, keep it coming