As Transaction Costs Decrease,firm Size (The Number of Employees)should Shrink

question 36

True/False

As transaction costs decrease,firm size (the number of employees)should shrink because it becomes easier and cheaper for the firm to contract for the purchase of goods and services in the marketplace rather than to make the product or offer the service itself.

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Definitions:

Inventory

A detailed list or stock of goods, materials, or other items held by an organization or individual.

Albert Bandura

A psychologist known for his work on social learning theory, emphasizing the role of observational learning, self-efficacy, and modeling in behavior.

Julian Rotter

An American psychologist known for his development of social learning theory and the concept of locus of control.

Personality Theory

A framework or model designed to explain and predict individual behavior and psychological processes based on characteristic patterns of thoughts, feelings, and behaviors.