1. WHY does producing the output where MR=MC work?
2. Sending jobs overseas (outsourcing accounting, IT, engineering functions, etc.) has been used more and more by companies, (although some companies are now moving away from this practice), and has become more hotly debated recently with unemployment reaching very high levels in the U.S.
3. What do others think of this practice? Have you experienced this in your company (Kaiser Permanente)? Would you make the same recommendations (that you suggest in our discussion on sending jobs overseas) to the president as his economic advisor?
4. Suppose companies are saying that they will go out of business if they have to incur the higher costs of using U.S. workers? What would you recommend as a policy decision?