Discuss this strategy as an optimal response to change

Assignment Help Econometrics

Reference no: EM131227442

As noted in Chapter 2, one response of firms to increasing corporate liability for hazardous activities has been to spin off such activities to subsidiary firms whose liability is limited (Ringleb and Wiggins 1990). In other words, the firm replaces an internal transaction with a market transaction. Discuss this strategy as an optimal response to a change in the costs of organization relative to the costs of enforcing contracts.

Reference no: EM131227442

Questions Cloud

Blame for credit crisis : Many investors that purchased mortgage-backed securities just before the credit crisis believed that they were misled because these securities were riskier than they thought. - Who is at fault?

Construct the production possibility frontier : Consider an economy with a labour force of 10,000. Each worker can produce 100 kilograms of agricultural produce per year or 200 manufactured items. a) Construct the production possibility frontier (PPF). b) Suppose the labour force grows by 20 per..

Discuss the issues that are relevant to an economic : The case of Siegel v. Eaton & Prince Co. (46 N.E. 449, 1896) involved a contract for the installation of an elevator in a department store. When the store burned down, it sought to invalidate the contract on the grounds of impossibility. Discuss t..

What is this movement called transcendentalism and why : You are an American Transcendentalist in 2016. What is this movement called Transcendentalism, and why is it important? Write your paper as if you are defining the movement to someone who knows nothing about it, but someone who wants to know every..

Discuss this strategy as an optimal response to change : Discuss this strategy as an optimal response to a change in the costs of organization relative to the costs of enforcing contracts.

Service characteristics of each delivery option : What are the cost implications of each of delivery option and what are the qualitative and service characteristics of each delivery option?

Contagion effects of credit crisis : Contagion Effects of Credit Crisis:- Explain how the credit crisis adversely affected many other people beyond homeowners and mortgage companies.

For which values of c is it efficient to breach the contract : After observing C, the seller must decide whether to produce and deliver the good, or not produce it and breach the contract.

Interest rate constant : If the central bank now wants to keep the interest rate constant, instead of the money supply, how does it need to adjust the real money supply as income increases?

User Account

All Pages