The managerial structure of a ﬁrm is organized to reduce transaction costs.

Name: The managerial structure of a ﬁrm is organized to reduce transaction costs.
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The managerial structure of a firm is designed to reduce transaction costs by creating a hierarchy of decision-making that minimizes the costs associated with negotiating and enforcing contracts between parties. This is based on the theory of the firm, which suggests that firms exist to minimize the costs of doing business in the marketplace.

The Managerial Structure of a ﬁRm Is Organized to Reduce