BUS 374 Lecture Notes - Lecture 5: Carrying Capacity, Sunk Costs, Corporate Law

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 374
• Professor: Rajiv Kozhikode

Document Summary

All of these represent rationally ordered arrangements to achieve particular ends in this course, our focus will mainly be on business corporations. Individuals are supposed to play roles that help achieve these ends. But they bring more that just roles to the organizations, limiting the efficiency of the system . But control and consent go hand in hand. Therefore an organization takes a cooperative function comprising of formal and informal interactions that shape actions aimed at achieving various ends. Cost of setting up workshops for each laborer is higher than the average cost of setting it up for a lot of laborers. Cost of consumables will be higher for each laborer. Willingness to cooperate will be limited or even absent, but complex tasks need cooperation. When employed in a firm the average productivity increases as less productive workers and more productive workers will average out. Someone who has expertise in a production process.