Production Through the Firm Is Often More Efficient Than Market

question 112

Multiple Choice

Production through the firm is often more efficient than market exchange when:​

• A)it involves multiple transactions among many resource owners.
• B)it involves the exchange of one good or service for other goods or services.
• C)the cost of transacting business through market relations is less than the cost of undertaking the same activity within the firm.
• D)inputs are easily identified, measured, priced, and hired.
• E)the costs of determining inputs and negotiating contracts are low.

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Definitions:

Cooperative

An organization or business owned and operated by its members, who share the benefits and responsibilities of the enterprise.

Collaborative

Involving two or more parties working together towards a common goal, emphasizing teamwork and partnership.

Distinctive

Having a unique quality, characteristic, or feature that distinguishes it from others within a similar category or context.

Dual

Characterized by having two parts, elements, or aspects.