Wednesday, February 1, 2012

Economics Problem?

Consider the following pairs of situations. In each pair explain which situation is more likely to be susceptible to coordination problems

(a) Maintenance of a homeowner’s lawn by a gardening company versus maintenance of a football or soccer stadium’s grass turf by a gardening company.

(b) Design of a toolbox to hold tools versus design of a wafer to hold the wires of a microscopic silicon chip.

Economics Problem?
a) When a company deals with another company we have got many ways to coordinate and it′s easier to schedule the tasks. When a company deals with an individual, more things have to be arranged and discussed, I mean most private gardens are different and special but all soccer grounds to play football are similar.

b) In this case, the more people and departments involve the more complicated the job to coordinate can be.


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