Team Production and Specialization Both Share One Important Feature in Common

question 17

Multiple Choice

Team production and specialization both share one important feature in common because both are potentially more productive, both may account for the existence of firms. However there are important differences; which of the following is among them?

• A)It is easier to evaluate individual productivity in teams.
• B)It is easier to evaluate individual productivity in specialization.
• C)Team production must be conducted in one firm.
• D)It is easier to evaluate team than individual productivity.

---

Definitions:

Principal

In a contractual or fiduciary relationship, the principal is the party who authorizes an agent to act on their behalf.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Agency Relationship

A connection between two parties where one, the agent, is authorized to act on behalf of the other, the principal, in dealings with third parties.

Rescission

The termination of a contract.