Firms are often more efficient than markets as coordinators of economic activity because
A) firms can achieve lower transaction costs.
B) markets cannot coordinate production.
C) firms don't rely on economies of scale while markets do.
D) firm coordination is always more economically efficient than market coordination.

Question

Quizplus · Accepted Answer

Firms can achieve lower transaction costs by internalizing transactions, reducing the need for market exchanges and the associated costs.

Firms Are Often More Efficient Than Markets as Coordinators of Economic