Ronald Coase's study, The Nature of the Firm, argued that
a. market exchange is less costly than hierarchical exchange
b. markets are more efficient than hierarchies
c. firms are formed to take advantage of situations in which hierarchies are more efficient than markets
d. the role of the entrepreneur is primarily to deal with central authority
e. markets tend to be less competitive over time
Question 2
The actions taken by arbitrageurs in the foreign exchange markets
a. destabilize foreign exchange markets
b. are highly risky
c. have no effect on exchange rates
d. help assure that exchange rates are equalized across all markets
e. are the same as those undertaken by speculators
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