One Advantage of Team Production Over Contracting Out Is That

question 141

Multiple Choice

One advantage of team production over contracting out is that

• A) the cost of negotiating and enforcing contracts is generally lower with team production than with contracting out.
• B) the principal agent problem is eliminated by team production but cannot be addressed in contracting out.
• C) costs are always lower with team production because of the elimination of transactions costs.
• D) efficiency is always greater with team production.

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Definitions:

Ratio Data

Ratio data is a type of quantitative data that enables the measurement of variables in defined units, allowing for a full range of descriptive statistics, including true zero values and proportional comparisons.

Nominal Variables

Variables that represent categories with no inherent order or ranking among them.

Counts

The act of determining the total number of items or occurrences of something.

Numbers

Numbers assign value and relativity to phenomena. As contrasted with numerals, they can be calculated.