Ask Question
BusinessBusiness
17 November, 22:05

According to economists Alchian and Demsetz, firms are formed when

A. the sum of what individuals can produce as a team is greater than the sum of what individuals can produce working alone.

B. the sum of what individuals can produce working alone is greater than the sum of what individuals can produce as a team.

C. what each individual can produce as a member of a team is less than what each individual can produce working alone.

D. the sum of what individuals can produce as a team is equal to the sum of what individuals can produce working alone.

E. none of the above

+4
Answers (2)
  1. 17 November, 22:42
    0
    Answer:A

    Explanation:This question is self explanatory, Alchian and Demsetz are of the options that firms involves a group of people coming to produce goods which brings about greater output than that of individuals. Their focus was mainly on team production in analysing the theory of firms rather than output per individual
  2. 18 November, 00:31
    0
    A) the sum of what individuals can produce as a team is greater than the sum of what individuals can produce working alone.

    Explanation:

    Alchain and Demsetz studied organizations as a cooperative and specialized union resulting from an increase in productivity and lower costs, in other words organizations are the result of synergy. They argued that in order for synergy to result, team work must be combined in an organized manner so that positive cooperation results.

    Their theory applies to both individual and companies that merge together.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “According to economists Alchian and Demsetz, firms are formed when A. the sum of what individuals can produce as a team is greater than the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The dump/restore utility is limited to a maximum of how many different incremental backups?
Answers (1)
Jean's Fashions is growing quickly. Dividends are expected to grow at a 22 percent rate for the next 3 years, with the growth rate falling off to a constant 8 percent thereafter. The required return is 12 percent and the company just paid a $3.
Answers (1)
A company provided $1,500 of services to customers during the month of May. The customers paid in June.
Answers (1)
Going public offers a company the following advantages, except: a. The ability to raise capital at a higher valuation b. Access to broader financial markets to fund capital requirements c.
Answers (1)
To minimize potential risks of harm, a researcher conducting an on-line survey can:
Answers (1)
New Questions in Business
Year-to-date, Oracle had earned a - 1.38 percent return. During the same time period, Valero Energy earned 7.62 percent and McDonald's earned 0.40 percent.
Answers (1)
the market value of a property is $90,000 and is assessed at 35%. The annual taxes are $1,260. What is the tax rate?
Answers (1)
Information related to plant assets, natural resources, and intangibles at the end of 2020 for Kingbird, Inc.
Answers (1)
If, at the current price, there is a shortage of a good, then a. sellers are producing more than buyers wish to buy. b. the market must be in equilibrium. c. the price is below the equilibrium price. the. quantity demanded equals quantity supplied
Answers (1)
O'Connell & Co. expects its EBIT to be $42,000 every year forever. The firm can borrow at 6 percent. O'Connell currently has no debt, and its cost of equity is 10 percent and the tax rate is 35 percent.
Answers (1)
Home » Business » According to economists Alchian and Demsetz, firms are formed when A. the sum of what individuals can produce as a team is greater than the sum of what individuals can produce working alone. B.
Sign Up Forgot Password?