The Simpler a Production Process Is

question 14

Multiple Choice

The simpler a production process is,

• A)the greater the cost of production
• B)the greater the transaction cost of using markets
• C)the more likely a firm will use the market to organize production
• D)the more likely a firm will used centralized control to organize production
• E)the more likely that transaction costs increase by using centralized control of production

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Definitions:

Manufacturing Plant

A facility where goods are produced on a large scale using machinery, often involving assembly lines or automated processes.

Infrastructure

The fundamental facilities and systems serving a country, city, or area, including transportation, communication, utilities, and public services.

Precedent

A legal decision or case that establishes a principle or rule which courts may follow in future cases with similar issues.

Jurisdiction

The official power to make legal decisions and judgments, typically in the context of a geographic area or a specific type of legal issue.