Why Are Institutions Valuable for Actors That Interact Frequently

question 67

Multiple Choice

Why are institutions valuable for actors that interact frequently?

• A)Actors can avoid renegotiating rules by having permanent procedures.
• B)Actors can force other members to comply with the institution's rules.
• C)Institutions will change other actors' interests when members' interests are in conflict.
• D)Institutions are the only way that actors can monitor other actors' actions.
• E)Being members of an institution will give the actors an advantage over nonmembers.

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Definitions:

Aircraft Production

The process and industry involved in designing, manufacturing, and assembling aircraft.

Newspaper Printing

The process of mass-producing copies of a newspaper document, whereby the news and other data are printed onto papers.

Economies of Scale

The cost advantage that arises with increased output of a product, where the average cost per unit decreases as the scale of production rises.

Inputs

Resources such as labor, materials, and capital used in the production process to create goods and services.