Which of the following can lead to a firm being more efficient that a market? A firm can have I. economies of scale.
II) economies of scope.
III) lower transactions costs.
A) III only
B) I and II
C) II and III
D) I, II and III

Question

Quizplus · Accepted Answer

All three factors can contribute to a firm being more efficient than a market. Economies of scale allow a firm to reduce costs per unit as production increases. Economies of scope enable a firm to lower costs by producing a variety of products. Lower transaction costs can make internal operations more efficient than market transactions.

Which of the Following Can Lead to a Firm Being