One of the Reasons That a Firm Can Be ________

question 360

Multiple Choice

One of the reasons that a firm can be ________ efficient than a market is that the firm ________.

• A) more; does not have any economies of scale
• B) more; lowers transactions costs
• C) less; has economies of scope
• D) less; produces lower profits

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Definitions:

Cash Flows

The aggregate sum of funds flowing in and out of a company, significantly influencing its ability to meet short-term obligations.

Expected Cash Flows

The anticipated stream of cash payments or receipts over a given period, used in evaluating investments or business projects.

Market

A venue or system where parties engage in exchange of goods, services, or information, including physical marketplaces or virtual markets.

Sole Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business.