Business, 27.08.2021 17:40 kaylaschauman8660
For each commodity bundle listed below, state whether or not it is possible for that bundle to be a solution to her utility maximization problem. If it is possible, state one possible value for her bliss point such that the bundle is her solution. If it is not possible, clearly demonstrate why not?
a. (x1, x2)=(3,9)
b. (x1, x2) = 6,9)
c. (x1, x2)=(3, 3)
d. (x1, x2) = (8,3)
Answers: 2
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Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.
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