According to Coase, firms emerge when
a. transaction costs in the market are less than the cost of hierarchical control
b. transaction costs in the market are more than the cost of hierarchical control
c. prices in the market are less than the cost of hierarchical control
d. prices in the market are more than the cost of hierarchical control
e. implicit contracts in the market can be made explicit in a firm
B
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Adjustments in ________ take the economy from the short-run equilibrium to the long-run equilibrium
A) imports and exports B) wages and prices C) the multiplier D) interest rates
In the aggregate demand-aggregate supply model, if entrepreneurs become convinced that future profitability of capital has increased,
A) current output will fall, but the price level will rise. B) current output will rise, but the price level will fall. C) current output and the price level will both rise. D) current output and the price level will both fall.
If the government imposes a binding price floor in a market, then the consumer surplus in that market will increase
a. True b. False Indicate whether the statement is true or false
An initial injection of money into the banking system will create new money supply through a sequence of excess reserves being transformed into loans. New money creation eventually ends because required reserves shrink loanable excess reserves in each round of new money creation
Indicate whether the statement is true or false