Ronald Coase would say that the firm, in most cases, is more efficient than the market in allocating resources because:
A) the firm can save marketing costs by internalizing operations.
B) the market depends on barter.
C) of limits that bound the area of rationality.
D) managerial decision making maximizes resource utilization.
E) none of the above.

Question

Quizplus · Accepted Answer

Coase argued that firms exist because they can reduce transaction costs associated with using the market, such as marketing costs, by internalizing operations and coordinating resources more efficiently within the organization.

Ronald Coase Would Say That the Firm, in Most Cases