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The suppliers profit margin may not represent any economic profit, and profit margin should pay for the capital investment and the risk borne.Įconomics of Strategy, 7th edition PDF focuses on the key economic concepts college students must master in order to develop a sound business strategy. It should not matter if the costs of performing an activity are incurred by the firm Make or by the supplier Buy. But if the asset is easily available in the market the belief regarding competitive advantage will have to be reevaluated. 5.īesanko Economics Of Strategy Solutions To QuestionsĮmbed Size px x x x x Vertical boundaries of the firm demarcate which tasks in the vertical chain are to be performed inside the firm and which to be out-sourced.
Besanko economics of strategy quizlet download#
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