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

Mya Johns

Business

3 March, 10:13

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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Chasity Casey · 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.