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:

Global Trade

The trade of commodities, services, and financial resources between countries or regions.

Legal Issues

Disputes or matters that involve interpretation and application of law in conflict resolution or decision-making processes.

Manufacturers

Entities involved in the process of producing goods from raw materials through various processes, machinery, and operations.

Consumers

Individuals or households that use goods and services generated within the economy.