Multiperson firms exist to reduce all of the following costs except:
A)legal.
B)transactions.
C)monitoring.
D)contracting.

Question

Quizplus · Accepted Answer

Multiperson firms primarily exist to reduce transaction, monitoring, and contracting costs through internal coordination and economies of scale. Legal costs, however, are not a primary reason for the formation of multiperson firms; these costs can be associated with both solo and multiperson firms and do not necessarily decrease by forming a multiperson firm.

Multiperson Firms Exist to Reduce All of the Following Costs