Q1. Why may vertically integrated delivery systems lead to lower productions costs? Why may these systems lead to higher costs? Use agency theory and transaction cost economics in your explanations.
Q2. Explain the concept behind the governments TARP program and the ensuing stimulus packages that were implemented?
Q3. Suppose that in the situation shown below, True Image's profits are $1.5 million if the firm accepts Dell's contract offer of $20 per copy. Now will Dell offer True Image a contract of $20 per copy or a contract of $30 per copy? Briefly explain.