13. According to the study guide, why did traditional hierarchical firms historically outperform markets in many settings?
- 1Markets lacked consumers, so firms had no competition.

- 2Managers were costless and therefore always more efficient than digital systems.

- 3Hierarchies could perform alignment, coordination, and expertise integration more effectively through managerial oversight and shared culture.

- 4Firms were better only because they owned more physical assets.
