which of the following is a difference between contracting and team production?\n○ while contracting leads…

which of the following is a difference between contracting and team production?\n○ while contracting leads to an increase in transaction costs, team production requires monitoring and providing incentives to employees to avoid shirking.\n○ while contracting leads to a decrease in cost of production, team production leads to an increase in costs.\n○ while contracting leads to maximization of profits, team production leads to an increase in the level of specialized knowledge within the team.\n○ while contracting involves the employment of workers operating under the supervision of an owner, team production involves no salaried employees.

which of the following is a difference between contracting and team production?\n○ while contracting leads to an increase in transaction costs, team production requires monitoring and providing incentives to employees to avoid shirking.\n○ while contracting leads to a decrease in cost of production, team production leads to an increase in costs.\n○ while contracting leads to maximization of profits, team production leads to an increase in the level of specialized knowledge within the team.\n○ while contracting involves the employment of workers operating under the supervision of an owner, team production involves no salaried employees.

Answer

Brief Explanations:

Contracting often requires less monitoring as workers operate under specific agreements. Team production may face issues like shirking and needs monitoring and incentives. Contracting doesn't necessarily involve employment under owner - supervision in the same way as team production. Team production can lead to increased costs due to monitoring and may or may not maximize profits. The key difference is that while contracting leads to an increase in transaction costs and requires monitoring and incentives to avoid shirking, team production has different cost - structure and management implications.

Answer:

While contracting leads to an increase in transaction costs, team production requires monitoring and providing incentives to employees to avoid shirking.