Question

An attempt to explain that vertical integration is more efficient than contracting for goods and services in the marketplace when the transaction costs of buying goods on the open market becomes too great has been proposed by _________.

A) population theory.
B) institution theory.
C) freakonomics.
D) transaction cost economics.
E) transaction growth theory.

Answer 1

E) transaction growth theory.

Step-by-step explanation:

• The theory incorporates vertical attempts to integrate and is more an efficient than contracting for the goods and the services in the market place and when there transaction costs of buying the goods from the open market when the market becomes too great.