The drop in administrative costs relative to transaction costs is explained by:
A)Dominant firms' ability to push down wages.
B)A relentless search for lowering operational costs
C)The emergence of globalisation
D)An increase in the efficiency of firms, induced by improvements in technology and management techniques

Question

Quizplus · Accepted Answer

The drop in administrative costs relative to transaction costs is primarily due to an increase in the efficiency of firms, induced by improvements in technology and management techniques. This allows firms to streamline processes and automate administrative tasks, leading to lower administrative costs.

The Drop in Administrative Costs Relative to Transaction Costs Is