Economists Alchian and Demsetz Suggest That Firms Are Formed When

question 218

Multiple Choice

Economists Alchian and Demsetz suggest that firms are formed when

• A)the sum of what individuals can produce alone is greater than what they can produce as a team.
• B)someone wants to earn profits.
• C)someone comes up with the idea that customers will buy a new product.
• D)the sum of what individuals can produce as a team is greater than the sum of what they can produce alone.

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Definitions:

Growth Needs

Psychological requirements for personal development and self-improvement.

Existence Needs

Basic requirements for human survival, such as food, water, shelter, and safety, which are considered the foundation of Maslow's hierarchy of needs.

Supervision

The act of overseeing and directing work and workers, ensuring tasks are completed efficiently and effectively.

Belongingness Needs

These are fundamental human motivations to be accepted and included as part of a group or community.