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How Does Unpredictability in the Environment Influence the Relative Costs

Question 6

Multiple Choice

How does unpredictability in the environment influence the relative costs of the two forms of economic organization?


A) It saturates the management of contracts activity and external relationships
B) It disrupts processes and procedures
C) It tends to increase administrative costs of vertical integration because of the need for flexibility and speed
D) It has no influence at all

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