Fama and Jensen suggest that "the form of organization that survives in an activity is the one that delivers the product demanded by customers at the lowest price while covering costs." This is an example of
A)market and organizational efficiency.
B)market and organizational equity.
C)economic benchmarking.
D)defective organizational architecture.

Question

Quizplus · Accepted Answer

Fama and Jensen's statement is all about efficiency in the marketplace and in organizational operations. It suggests that the organization that can deliver quality products at competitive prices while managing costs effectively will prevail in the market. This aligns with the concept of market and organizational efficiency, which is the optimal use of resources to produce goods and services that maximize value for customers and stakeholders.

Fama and Jensen Suggest That "The Form of Organization That