Firms exist because of the low cost associated with creating complete contracts

Name: Firms exist because of the low cost associated with creating complete contracts
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Firms exist because of the high cost associated with creating complete contracts, which makes it difficult to coordinate and enforce agreements between individuals and organizations outside of a firm. The firm provides a way to internalize production and avoid the transaction costs of negotiating and enforcing contracts in the market.

Firms Exist Because of the Low Cost Associated with Creating