Outsource production of inputs that are large firms

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Reference no: EM13891931

In many modern U.S. industries, the following patterns seem to hold:

(a) Small firms are more likely to outsource production of inputs that are large firms;

(b) “Standard” inputs are more likely to be outsourced than “tailor-made” inputs.

What factors might explain these patterns?

Reference no: EM13891931

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