According to Coase, Firms Emerge When

According to Coase, firms emerge when

A) transaction costs in the market are less than the cost of hierarchical control
B) transaction costs in the market are more than the cost of hierarchical control
C) prices in the market are less than the cost of hierarchical control
D) prices in the market are more than the cost of hierarchical control
E) implicit contracts in the market can be made explicit in a firm