Which of the Following Is a Reason Why Firms Can

question 301

Multiple Choice

Which of the following is a reason why firms can be more efficient than markets as coordinators of economic activity?

• A) economies of scale and scope
• B) higher transactions charges
• C) elimination of the principal-agent problem
• D) all of the above

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Definitions:

Additive Inverse

The additive inverse of a number is another number that, when added to it, results in zero.

Exponential Expression

An algebraic expression where a number (base) is raised to a power or exponent, representing how many times to multiply the base by itself.

Square Inches

A unit of area measurement in the imperial and US customary systems, equivalent to the area of a square with sides of one inch.

Triangle Area

The measure of the region enclosed by the three sides of a triangle, often calculated as half the product of its base and height.