Production Through the Firm Is Often More Efficient Than Market

question 130

Multiple Choice

Production through the firm is often more efficient than market exchange when

• A)production requires many transactions among many resource owners
• B)production requires few transactions between two resource owners
• C)the cost of transacting business through market relations is less than the cost of undertaking the same activity within the firm
• D)inputs are easily identified, measured, priced, and hired
• E)the costs of determining inputs and negotiating contracts are low

---

Definitions:

Statistical Measure

A quantitative value derived from a sample or population, used to summarize or describe characteristics of data.

Sample Mean

The arithmetic average of a set of sample observations, used as an estimate of the population mean.

Sample Median

The middle value in a sorted list of numbers from a selected sample, which divides the data into two equal halves.

Sample Mode

The value that appears most frequently in a data sample, representing the most common outcome.