The more complicated the process used to produce a good,

Question

Quizplus · Accepted Answer

The greater the complexity of the production process, the more difficult it is for firms to coordinate and manage inputs and outputs efficiently. As a result, the transaction costs of organizing production through markets tend to be higher, as there are more opportunities for miscommunication, mistakes, and other forms of inefficiency. Thus, firms may be more likely to use administrative controls to manage the production process, rather than relying on the market to provide coordination.

The More Complicated the Process Used to Produce a Good