BUS 207 Study Guide - Quiz Guide: Ebay

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 207
• Professor: Karen Ruckman

Document Summary

1: stan"s rent is the amount he earns from selling to edison. =5,000,000-100,000=4,900,000: quasi-rent is the difference between how much stan makes from selling to edison and selling to the next best alternative. We have to assume that that amount is less than stan would make selling to edison: yes. Stan can claim that it has cost way more than m to make it: no they shouldn"t definitively backwards integrate. The expected profits using the open market is the same that it would be if they owned their own timber: no, it wouldn"t change. Network organizations only work if there is a hub or a leader (ebay, for example). Also, and probably more important the main disadvantage to the network organizational structure is that each dept would act somewhat independently and that means that the university message/theme/vision/image would be fragmented and out of control.