Armen Alchian and Harold Demsetz suggest that firms are form…

Armen Alchian and Harold Demsetz suggest that firms are formed when the benefits that can be gained from working as a team are less than the sum of the benefits that could be gained by acting individually. (1)________________(Ture/False) According to Ronald Coase, firms exist to reduce transaction costs.  (2)_____________(Ture/False) 

__________________ states that as ever larger amounts of a v…

__________________ states that as ever larger amounts of a variable input are combined with fixed inputs, eventually the marginal physical product of the variable input will decline. Since no inputs are fixed in the long run, this law applies to the short run, but not the long run.

a b c d In economics, a firm that makes a zero econ…

a b c d In economics, a firm that makes a zero economic profit is said to be earning a normal profit.  it also means that he has “done as well as could have been done.” Therefore, it is not bad to make zero economic profit. Based on the above table ________ is the case of a zero economic profit (i.e., a normal profit).