Question

Transaction cost theory is about the Select one: o a. Problems an organization and a supplier or distributor encounter in managing their relationship. O b. Boundaries the organization draw around its activities. O c. Cost/value relationship the organization presents to its customers. O d. Business strategy for the firm. First mover disadvantages include: Select one: O a brand loyalty, preemption of scare assets, exploiting buyer switching costs. O b. research and development costs, under developed supply and distribution channels, immature enabling technologies and complements. O c. being ahead of everyone in the market. O d. leading and educating the competition in the chosen field.

Answer 1

TRANSACTION cost theory is about the

Answer - b. boundaries the organization draw around its activities

To analyze transaction costs you need to break all the organization's economic activity into units of economic transaction. According to transaction cost, an organization should draw its boundary to include those activities by which the organization can make what it needs more efficiently. Make or buy decisions are the key setting organizational boundaries in transaction cost theory.

The First-mover disadvantage includes

Answer - b. research and development costs underdeveloped supply and distribution channels, immature enabling technologies and complements

First movers need to hold up under the brunt of R&D costs and may confront impressive shopper vagueness. Second movers can profit by the R&D and showcasing endeavors of the principal mover, delivering an innovation that costs less to create and that adjusts for any of the primary mover's errors.

Lacking Supply and Distribution Channels When a firm acquaints another with the-world innovation, regularly no suitable providers or wholesalers exist. The firm may confront the overwhelming undertaking of creating and delivering its own provisions and distribution administration or aiding the development of provider and engineer markets

Immature Enabling Technologies and Complements When firms create technologies, they frequently depend on different makers of enabling technologies.

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