A primary advantage of organizing economic activity within firms is the

A primary advantage of organizing economic activity within firms is the



A. ability to coordinate highly complex tasks to allow for specialized division of labor.


B. low administrative costs because of reduced bureaucracy.


C. eradication of the principal-agent problem.


D. high-powered incentive to work as salaried employees for an existing firm.


Answer: ability to coordinate highly complex tasks to allow for specialized division of labor.


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