Author Question: What are the three major forms of governance and what are their ... (Read 15 times)

fasfsadfdsfa · **on:** Jun 30, 2018

What are the three major forms of governance and what are their dimensions?

Question 2

Suppose that at a given level of output, a perfectly competitive firm charges a price of 12 and has average total costs of 10 . If its economic profit is 20,000 . then it must be producing:
a. 40,000 units of output.
b. 20,000 units of output.
c. 30,000 units of output.
d. 10,000 units of output.
e. 50,000 units of output.

amanda_14 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Transactions take place under governance arrangements that describe the opportunities available to the parties and the constraints under which they operate.The three major forms of governance are markets, contracts, and hierarchies. The two major dimensions of governance are trade-offs and mixed-modes of governance. Decisions taken under different forms of governance entail different trade-offs. On the other hand, transactions can also take place under a mix of governance modes.

Answer to Question 2

d