Which advantage accrues when teams, or firms, are formed?

Question

Quizplus · Accepted Answer

All of the above advantages accrue when teams or firms are formed. Positive synergies arise from the combined efforts of individuals working together. Each participant joining perceives an advantage to joining, such as gaining access to resources or a broader range of expertise. There is also an increase in economies of scale, such as lower costs per unit due to increased production. Finally, contracting efficiencies arise from the ability to negotiate better terms with suppliers or customers by combining bargaining power.

Which Advantage Accrues When Teams, or Firms, Are Formed