Author Question: The more complicated the process used to produce a good, a. the greater are the transaction costs ... (Read 49 times)

tiara099 · **on:** Jun 30, 2018

The more complicated the process used to produce a good,
a. the greater are the transaction costs of organizing production through markets
b. the lower are the transaction costs of organizing production through markets
c. the less likely a firm will use administrative controls to organize the production process
d. the more likely a firm will use the market to organize the production process
e. the more likely consumers will choose to purchase the good over other alternatives in the market

Question 2

The purchasing power parity theory helps explain long-run trends in exchange rates, but not short-run fluctuations.
a. True
b. False