One of the Factors Explaining the Emergence of Large Firms

question 52

Multiple Choice

One of the factors explaining the emergence of large firms during the 19th and the early 20th centuries, is:

• A)The evolution of customers' tastes over time
• B)The development of management techniques
• C)The improvement in telecommunications
• D)The decrease in administrative costs of the firm relative to the transaction costs

---

Definitions:

Oligopolistic Competition

Occurs when only a few firms dominate a market.

Commercial Airline Travel

The aspect of aviation that involves operating aircraft for hire to transport passengers or cargo on scheduled or charter services.

Electrical Service

Maintenance, repair, and installation services provided for electrical systems and components in buildings and infrastructure.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.