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Author Question: Opportunistic behavior may occur when A) a firm buys its inputs from multiple suppliers. B) ... (Read 113 times)

Hungry!

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on: Jul 1, 2018
Opportunistic behavior may occur when
 
  A) a firm buys its inputs from multiple suppliers.
  B) firms incur significant transaction costs when negotiating contracts.
  C) a firm backwards vertically integrates.
  D) a firm can buy a key component from only one supplier.

Question 2

Microsoft has integrated many components into its Windows operating systems, such as a web browser, media player, etc. How might this be an example of nonprice competition?
 
  What will be an ideal response?


jojobee318

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Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

There are a number of possible answers, including enhancing the attributes of the product (increasing demand), increasing switching costs to increase customer loyalty (reduce elasticity), etc.


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Hungry!

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Reply #2 on: Jul 1, 2018
Correct answers!


jojobee318

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Reply #3 on: Jul 1, 2018
Great! Please up vote :D


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