The Martinez Legal Firm (MLF) Recently Acquired a Smaller Competitor

Multiple Choice

The Martinez Legal Firm (MLF) recently acquired a smaller competitor, Miller and Associates, which specializes in issues not previously covered by MLF, such as land use and intellectual property cases. Given the increase in the firm's size and complexity, it is likely that its internal transaction costs will

A) decrease.
B) increase.
C) become external transaction costs.
D) be eliminated.