Ask Question
BusinessBusiness
8 July, 21:57

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

+5
Answers (2)
  1. 8 July, 22:15
    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.
  2. 8 July, 22:16
    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
Know the Answer?
Not Sure About the Answer?
Find 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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
All five members of a project team add 20% to their individual serial activities as a safety margin and submit their time estimates to the project manager.
Answers (1)
Jefferson Company is considering investing $33,000 in a new machine. The machine is expected to last five years and to have a salvage value of $8,000. Annual before-tax net cash inflow from the machine is expected to be $7,000.
Answers (1)
Pacifica Manufacturing retired a computerized metal stamping machine on December 31, 2011. Pacifica sold the machine to another company and did not replace it.
Answers (1)
Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department.
Answers (1)
Give your details understanding of the SMART GOAL
Answers (1)
New Questions in Business
Stuart Weddle's father is 55 years old and wants to set up a cash flow stream that would be forever. He would like to receive $15,000 every year, beginning at the end of this year.
Answers (2)
A year ago, you deposited $30,000 into a retirement savings account at a fixed rate of 5.5 percent. Today, you could earn a fixed rate of 6.5 percent on a similar type account. However, your rate is fixed and cannot be adjusted.
Answers (1)
When banks spend (or loan) money, the money supply increases and when interest / loan payments are received, the money supply declines ... True false
Answers (1)
On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements.
Answers (1)
Company X had a net income of $25,000 for the year ended December 31, 2016. In 2016, Company X paid the out dividends of $10,000. At the end of 2016, Company X had a retained earnings balance of $60,000.
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?