In Practice, the Cost Minimization Strategy Can Be More Expensive

Multiple Choice

In practice, the cost minimization strategy can be more expensive than the opportunity maximization strategy. Which of the following is a way in which the cost minimization strategy is less expensive than the opportunity minimization strategy?

A) The loss of unexpected opportunities
B) The cost of extensive monitoring mechanisms
C) The costs of writing detailed contracts
D) The prevention of opportunistic behavior by the partner(s)