The major factor determining whether a firm or a market coordinates a particular set of activities is
A)cost.
B)a sale.
C)depreciation.
D)the size of the market.
E)the number of workers.

Question

Quizplus · Accepted Answer

The major factor determining whether a firm or a market coordinates a particular set of activities is the cost. If the cost of coordinating the activities within the firm is lower than the cost of coordinating them in the market, then the firm will coordinate them. If the cost of coordinating the activities in the market is lower than the cost of coordinating them within the firm, then the market will coordinate them. Therefore, cost is the major factor that determines which option will be pursued.

The Major Factor Determining Whether a Firm or a Market