Production Through the Firm Is Often More Efficient Than Market

Multiple Choice

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

A) production requires many transactions among many resource owners
B) production requires few transactions between two resource owners
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