Firms Are Often More Efficient Than Markets as Coordinators of Economic

question 197

Multiple Choice

Firms are often more efficient than markets as coordinators of economic activity because

• A) firms can achieve lower transaction costs.
• B) markets cannot coordinate production.
• C) firms don't rely on economies of scale while markets do.
• D) firm coordination is always more economically efficient than market coordination.

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Definitions:

Psychological Disorder

A pattern of behavioral or psychological symptoms that impact multiple areas of life and cause distress.

Placebo Effect

A phenomenon in which a person experiences a physical or psychological improvement after taking a substance with no therapeutic effect.

Diagnostic Test

Procedures used to identify and determine the cause of disease or disorder in an individual.

Anxiety Disorder

A category of mental health disorders characterized by significant and persistent worry and fear that interfere with daily activities.