If eBay entered the cooperative with its Australian partner for the purpose of testing the attractiveness of the Australian and New Zealand auction industries prior to making a more significant investment in these industries, this would be an example ofA. transaction cost economics. B. tacit collusion. C. explicit collusion. D. real options.

Question

Business

Derrick Bennett

29 August, 13:29

If eBay entered the cooperative with its Australian partner for the purpose of testing the attractiveness of the Australian and New Zealand auction industries prior to making a more significant investment in these industries, this would be an example ofA. transaction cost economics. B. tacit collusion. C. explicit collusion. D. real options.

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Answers (1)

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Lillian Harding · Answer 1

The correct answer is letter "D": real options.

Explanation:

A real option is a decision taken by a manager of an organization about new business investment opportunities. Usually, these types of decisions are taken when the business is looking for expansion, deferral, or the exit of a project. Real options are said to be potentially profitable decisions.