Which of the Following Can Lead to a Firm Being

question 12

Multiple Choice

Which of the following can lead to a firm being more efficient that a market? A firm can have I. economies of scale.
II) economies of scope.
III) lower transactions costs.

• A) III only
• B) I and II
• C) II and III
• D) I, II and III

---

Definitions:

Nonrival

A characteristic of a good whereby one person's consumption does not prevent or decrease the ability of others to enjoy it as well.

Private Good

A product or service that is consumed by a single individual or household and cannot be used or consumed by others simultaneously.

Pizza

A popular Italian dish consisting of a usually round, flat base of leavened wheat-based dough topped with tomatoes, cheese, and often various other ingredients, which is then baked at a high temperature.

Nonexcludable Good

A type of good for which it is difficult or impossible to exclude individuals from using, typically leading to free-rider problems.