Production Through Firms Is Often More Cost-Effective Than Market Exchange

Production through firms is often more cost-effective than market exchange when _____

A) market exchange involves multiple transactions among many resource owners.
B) market exchange involves the exchange of one good or service for other goods or services.
C) the cost of transacting business through market relations is less than the cost of undertaking the same activity within firms.
D) inputs are easily identified, measured, priced, and hired.
E) the costs of determining inputs and negotiating contracts are low.