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Production Through the Firm Is Often More Efficient Than Market

Question 52

Multiple Choice

Production through the firm is often more efficient than market exchange when:​


A) it involves multiple transactions among many resource owners.
B) it 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 the firm.
D) inputs are easily identified, measured, priced, and hired.
E) the costs of determining inputs and negotiating contracts are low.

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