Large Factory- Like Firms Survive Because

question 84

Multiple Choice

Large factory- like firms survive because:

• A)the ability to shirk is low.
• B)they are usually public companies.
• C)the gains from specialization are high.
• D)the cost of monitoring is low.

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Definitions:

Expected Utility Maximizer

An economic concept referring to individuals or entities that make choices under uncertainty to maximize their expected level of satisfaction or utility.

Utility Function

Depicts how different combinations of goods or services generate levels of happiness or utility for a person or household.

Probability

A measure of the likelihood of a specific event or outcome occurring, expressed as a number between 0 and 1.

Expected Utility Function

A concept in economics that quantifies an individual's preference for different outcomes, accounting for risk and uncertainty.