Production Through the Firm Is Often More Efficient Than Market

question 130

Multiple Choice

Production through the firm is often more efficient than market exchange when

• A)production requires many transactions among many resource owners
• B)production requires few transactions between two resource owners
• C)the cost of transacting business through market relations is less than the cost of undertaking the same activity within the firm
• D)inputs are easily identified, measured, priced, and hired
• E)the costs of determining inputs and negotiating contracts are low