Contracts are:
a. are command-based systems in which prices usually play a relatively small role.
b. a set of promises intended to create economic value and enforceableby a court or some other agency, such as an arbitrator.
c. are a mode of governance that facilitate the purchase and sale of standardized goods or services, often in repeated transactions.
d. economic institutions that can greatly ease the process by which a transaction moves from proposal to commitment.
Question 2
Overhead costs are identical to fixed costs.
a. True
b. False
Indicate whether the statement is true or false
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