A Disadvantage of Team Production Compared to Contracting Out Is

question 145

Multiple Choice

A disadvantage of team production compared to contracting out is that

• A) transaction costs are often higher with team production.
• B) the level of specialized knowledge required by team production is greater than with contracting out.
• C) the problem of shirking must be more carefully addressed with team production.
• D) team production increases the cost of production in most situations.

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Definitions:

Auditory Nerve

The nerve that transmits sound information from the inner ear to the brain.

Eardrum

A thin, tightly stretched membrane located in the middle ear that vibrates in response to sound waves, aiding in the transmission of sound to the inner ear structures.

Anvil

A heavy iron block used in metalworking as a surface upon which metal can be struck and shaped.

Stirrup

A small, U-shaped bone in the middle ear that plays a key role in transmitting sounds from the outer ear to the inner ear.