A contract containing an adjustment provision which allows the supplier to recover a fraction of his additional costs when input prices cross a certain level, is considered efficient because:
a. it reallocates the supplier's risk while checking his activities.
b. it reallocates risks completely to the buyers.
c. it allows the supplier to take up risks.
d. it allows the buyers to partially reallocate their risks.
A
Economics
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If the prices of goods begin to rise rapidly, people may find it difficult to maintain their lifestyles. Explain why
What will be an ideal response?
Economics
An automatic increase in a wage rate found in some contracts is known as a
A) change of labor agreement. B) cost of labor arrangement. C) cost of living adjustment. D) charge for living amendment.
Economics