If Our Theory of the Firm Suggests That Joint Production

question 39

Multiple Choice

If our theory of the firm suggests that joint production is more efficient than individual production and that firms exist as a solution to the maximization problem, which of the following is inconsistent with that theory?

• A)specialization and division of labor
• B)shirking
• C)decreasing returns to scale
• D)transaction costs

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Definitions:

Vessel Members

Components of the xylem tissue in plants that help conduct water and minerals from the roots to the rest of the plant.

Companion Cells

Plant cells that aid in the transport and regulation of nutrients within the phloem.

Pits

Small depressions or cavities on a surface, often used to describe features in plant or geological structures.

Carry Water

To transport or convey water from one place to another, often vital for irrigation or supplying drinking water.