What is an output contract?
A)A contract in which a buyer agrees to purchase all of his or her goods from one seller.
B)A contract between a manufacturer and a distributor where the distributor only buys from the manufacturer and is contractually prevented from trading with the manufacturer's competitors
C)A contract in which the seller guarantees to sell all of its output to one buyer,and the buyer agrees to accept the entire quantity.
D)A contract in which a seller agrees to sell a product or service to the buyer only on the condition that the buyer also purchases an additional product from the seller.

Question

Quizplus · Accepted Answer

An output contract is a type of contract where the seller agrees to sell all the goods they produce or service they provide to a single buyer. This is a common contract used in the manufacturing industry. The buyer is assured that they will receive all the goods they require from a single source, while the seller can guarantee that they will have a stable customer to sell all their output.

What Is an Output Contract