Which one of the following statements is true?
A)Firms are markets in and of themselves.
B)Firms do not organize factors of production to produce goods and services.
C)Firms are buyers of consumer goods and services.
D)Efficient firms can eliminate scarcity.
E)Firms are often more efficient than markets as coordinators of economic activity.

Question

Quizplus · Accepted Answer

Firms are often more efficient than markets in coordinating economic activity because they can bring together resources, coordinate production, and respond quickly to changes in demand. However, firms cannot eliminate scarcity, as it is a basic economic reality that resources are limited while wants are unlimited. Firms organize factors of production to produce goods and services, and they may also be buyers of consumer goods and services, but they are not markets in themselves. Therefore, the only true statement among the options presented is that E, firms are often more efficient than markets as coordinators of economic activity.

Which One of the Following Statements Is True