Problem
Suppose a firm splits tasks in a value chain and tries to decide to get involved in the optimal production given its available factors of production. Draw a PPF involving R&D and components activities of this single firm. What does an isoquant represent? What happens if the price of components falls relative to components as a result of offshoring?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.