Question

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.

Answer 1

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

Step-by-step 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.