Which of the Following Is a Reason Why Firms Can

question 301

Multiple Choice

Which of the following is a reason why firms can be more efficient than markets as coordinators of economic activity?

• A) economies of scale and scope
• B) higher transactions charges
• C) elimination of the principal-agent problem
• D) all of the above

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Definitions:

Cognitive Task Analysis

A method used to study the thought processes involved in performing tasks, aiming to understand and improve human performance.

Task Analysis

The process of breaking down a task into its component parts to understand the skills and knowledge required to perform it efficiently.

Mental Tasks

Cognitive activities that require mental effort, including problem-solving, decision-making, and memory recall.

Needs Analysis Process

A systematic approach to identifying and evaluating the needs of a particular group or organization to inform decision-making and planning.