ECO370Y5 Study Guide - Midterm Guide: Piece Work
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W long term contracts as contrasted with short term contracts not as common in large part because their decisions not as major in some cases. W links with corporate performance for example, reward stock appreciation with stock options like executives. W strategic role of the executive may not apply as frequently in. 902,3,078. ,80- but there are exceptions especially if the managers have some unique skill. Question 4: suppose firm m manufactures a product using its own. Let r(i) = 10i represent the revenue earned by m if m and b operate under one integrated organization. 15 (a) determine the optimal investments by b and m (b) what are the first order conditions. = 10i p i2/2 p = transfer for input. = 10i + 4e i2/2 e2/2. Ss = 10(10) + 4(4) (10)2/2 (4)2/2 = 58 (d) explain why the investments would be optimal in the integrated organization.
