Author Question: Production through the firm is often more efficient than market exchange when a. production ... (Read 81 times)

V@ndy87 · **on:** Jun 30, 2018

Production through the firm is often more efficient than market exchange when
a. production requires many transactions among many resource owners
b. production requires few transactions between two resource owners
c. the cost of transacting business through market relations is less than the cost of undertaking the same activity within the firm
d. inputs are easily identified, measured, priced, and hired
e. the costs of determining inputs and negotiating contracts are low

Question 2

An arbitrageur in foreign exchange is a person who
a. buys foreign currency, hoping to profit by selling it at a higher exchange rate at some later date
b. earns illegal profit by manipulating foreign exchange
c. causes differences in exchange rates in different geographic markets
d. simultaneously buys large amounts of a currency in one market and sells it in another market
e. mediates disputes when there is no agreement on exchange rates in international currency markets