All of the Following Statements Are Correct Except

question 61

Multiple Choice

All of the following statements are correct except

• A)firms coordinate economic activity when they can perform a task more efficiently than markets can.
• B)Nobel Laureate Ronald Coase stated that firms cannot be more efficient than markets.
• C)markets can coordinate production.
• D)firms are often more efficient than markets as coordinators of economic activity because they can achieve lower transactions costs, economies of scale, economies of scope, and economies of team production.
• E)outsourcing is an example of market coordination.

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Definitions:

Diseconomies of Scale

A point at which a company grows so large that the costs per unit increase with the increase in production.

Experience Curve Effects

The reduction in unit costs of production as output increases, typically due to gained efficiencies and learning over time.

Regression Analysis

A statistical method used to examine the relationship between a dependent variable and one or more independent variables.

Target Variable

In statistical modeling and machine learning, the variable that is the object of prediction or explanation.