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:

Continuous Reinforcement

A method of learning where a behavior is reinforced every time it occurs, leading to faster acquisition of the behavior.

Intermittent Reinforcement

A conditioning schedule in which a reward or punishment (reinforcement) is not administered every time the desired response is performed, leading to more resistant behavioral patterns.

Partial Reinforcement

A conditioning schedule where only some responses are reinforced, leading to more resistant behavior to extinction.

Intrinsic Reinforcer

A type of motivation that comes from within an individual, such as personal satisfaction or enjoyment of a task.