If important component of firm production

Assignment Help Business Economics

Reference no: EM131172292

If an important component of a firm's production is difficult to specify in a contract and even more difficult to enforce in its production standards, then it probable makes sense to: a) buy the component in the open market b) use a simple short term contract c) take the risk necessary to buy the component d) vertically integrate upstream to build the component

Reference no: EM131172292

Questions Cloud

Paying interest on the net foreign debt : Suppose that the U.S. net foreign debt (liabilities less assets) is equal to 25 per cent of the country’s GNP and that foreign assets and liabilities pay an interest rate of 5 per cent per year. What would be the “debt burden” for the U.S. (i.e. inte..

Specific assets can create problems for company : Specific assets can create problems for a company. If a supplier invests in new machinery to deliver a part useful only to its biggest and best customers, it can find itself with:

Sales of meals relative to the average servers sales : Good Food Restaurant provides a monthly bonus for servers when sales volume exceeds 120% of the same month last year. The size of bonus is tied to the individual server’s sales of meals relative to the average server’s sales.

When decentralizing decision rights it is important : When decentralizing decision rights it is important that companies

If important component of firm production : If an important component of a firm's production is difficult to specify in a contract and even more difficult to enforce in its production standards, then it probable makes sense to:

To develop compensation system for workers managers should : To develop compensation system for workers managers should:

Which eggs demand and supply determinant : On 10 June 2015 CNN Money reported that a bird flu outbreak resulted in 35 million of the more than 300 million egg-laying birds in the country being killed. Which eggs demand and/or supply determinant(s) is/are affected? Price of good related in con..

If firm is very dependent on firm-specific human capital : If a firm is very dependent on firm-specific human capital then is should: a)develop programs for sending employees to the local university b) create a extensive internal labor system for career advancement c) offer compensating differentials for har..

Easy to assign and transactions costs are particular low : if property rights are easy to assign and transactions costs are particular low, then

User Account

All Pages