The costs of organizing a transaction are likely to increase when:
A) the product is highly complex.
B) it is easy to monitor the contract.
C) there is little uncertainty regarding future changes.
D) it is easy to enforce the contract.

Question

Quizplus · Accepted Answer

The costs of organizing a transaction are likely to increase with the complexity of the product because more resources are needed to define, negotiate, and enforce the terms of the contract, especially when the product's specifications, performance criteria, and quality standards are difficult to articulate and agree upon.

The Costs of Organizing a Transaction Are Likely to Increase