Answer to Question 1
J. D. Thompson has proposed that to operate efficiently, the firm must be able to operate as if the market will absorb the single kind of product at a continuous rate and as if the inputs flowed continuously at a steady rate and with specified quality. At the center of his argument was the idea that uncertainty creates inefficiency. In the ideal situation, the technical core is able to operate without uncertainty on both the input and output side.
Answer to Question 2
False
