Contracting 201 Costs in Markets
1. A sorority at the U of I is planning philanthropy to raise money for the Crisis Nursery in Urbana. Three women were given the task of investigating two possible fundraisers and making a recommendation to the whole sorority. The time that these women spend on their task is a a. search or information cost b. bargaining or decision cost c. policing or enforcing cost d. opportunity cost e. none of the above 2. A certain company holds a patent for a particular business The process. company licenses the right to use this process to other businesses. Routinely the company enters lawsuits against companies who are using the process without paying a fee. What cost of contracting do these lawsuits represent? a. search costs b. information costs c. decision costs d. enforcing costs e. none of the above 3. Which of the following occurs before a contract is made? a. Information costs b. Policing costs c. Enforcing costs d. Opportunity costs e. None of the above