Firms Coordinate Economic Activity More Efficiently Than Markets When Firms

question 87

Multiple Choice

Firms coordinate economic activity more efficiently than markets when firms have

• A)lower transactions costs.
• B)economies of scale.
• C)economies of scope.
• D)economies of team production.
• E)all of the above

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Definitions:

Quadrant A

Often part of a matrix or chart classification system, Quadrant A could refer to a specific sector defined by two variables used in strategic analysis or planning.

BCG Business Portfolio

A strategic analysis tool developed by the Boston Consulting Group that categorizes a company’s business units or products based on their market growth rate and market share.

SBUs

Strategic Business Units are organizational subunits of a larger corporation, each responsible for its own profitability and strategic direction.

Diversification Analysis

The process of evaluating the potential benefits of diversifying investments or product offerings in order to reduce risk and improve returns.