After Product Specifications Are Set,the Firm Must Decide If It

question 58

Short Answer

After product specifications are set,the firm must decide if it should make its own parts or buy them from an outside source.This is called the ____________________ decision.

---

Definitions:

Labor Productivity

The measure of economic output per unit of labor input, often used to gauge the efficiency of a workforce.

Savings Rate

The proportion of disposable income that is saved rather than spent on consumption.

Capital Flight

The massive outflow of capital from a country, often due to economic instability or the expectation of devaluation of its currency.

Financial Capital

Financial Capital refers to the funds provided by lenders (and investors) to businesses to purchase real capital equipment for producing goods/services.