Reading 16: Organizing Production - LOS h ～ Q1-3

答案和详解如下：

1.Which of the following statements least accurately describes why firms can coordinate economic activity more efficiently than markets? Firms can achieve:

A)   economies of scope.

B)   diversification benefits.

C)   economies of scale.

D)   economies of team production.

Click for Answer and Explanation B)

Firms can often coordinate economic activity more efficiently than markets because firms can reduce the costs of market transactions, and they can achieve economies of scale, scope, and team production.

2.The production of a rock concert is an example of which type of organization of an economic activity?

A)   Firm coordination.

B)   Market coordination.

C)   Economic coordination.

D)   Systemic coordination.

Click for Answer and Explanation B)

Market coordination occurs when a firm employs resources outside the firm more efficiently than if they relied only on internal resources.  An example is through the coordination of more than one market such as the production of a rock concert which involves many different markets (e.g., marketing, vending, musicians, security, facilities procurement, etc.).

3.Two ways in which economic activity may be coordinated include:

A)   market coordination and structural coordination.

B)   firm coordination and structural coordination.

C)   market coordination and firm coordination.

D)   market coordination and systemic coordination.

Click for Answer and Explanation C)

Firm coordination occurs when a firm produces its product using resources within the firm. Market coordination occurs when resources outside the firm are used for example a firm may have other companies produce the components of their product (outsourcing) and the firm then assembles these outsourced components in-house.