Firms Cope with Uncertainty and Incomplete Information by Using

question 71

Multiple Choice

Firms cope with uncertainty and incomplete information by using

• A)sole proprietorship, limited liability, and market coordination.
• B)ownership, incentive pay, and long-term contracts.
• C)team production, economies of scale, and transactions costs.
• D)the market, the firm, and internal organization.
• E)team production, economies of scale, and transaction costs.

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Definitions:

Inelastic

Describes a situation where the demand or supply of a good or service is relatively unresponsive to changes in price.

Excise Tax

A tax levied on specific goods, services, or transactions, often included in the price of the product, such as alcohol, tobacco, and gasoline.

Borne

The bearing or enduring of costs, responsibilities, or consequences by an entity, often in the context of who ultimately pays for or suffers from economic decisions.

Progressive

A political and social philosophy advocating for reforms and innovations aimed at addressing inequalities and improving the welfare of the population.