8. What do firms accomplish that selfisufficient households cannot? (a) Firms produce goods that are superior to those produced in self-sufficient households. (b) Firms are able to pay those who produce goods more money than households can. (c) Firms are able to reduce transaction costs for each good. (d) all of the previous

Firms play a crucial role in enhancing production efficiency and specialization. By bringing together diverse talents and resources, they can create products at a scale and with technological advances that self-sufficient households simply cannot achieve. This allows firms to leverage economies of scale, resulting in higher-quality goods and innovation that often surpass what individuals can produce on their own. In addition, firms streamline the production process and enhance distribution networks, which effectively reduces transaction costs for consumers. By creating centralized operations, firms minimize the resources required for transactions, making it easier for customers to access a wide variety of goods without the hassle of bartering or trading as self-sufficient households might have to do.