Managerial Economics 7th Edition by Paul Keat ,Philip Young,Steve Erfle

Exercise 3

Following are examples of typical economic decisions made by the managers of a firm. Determine whether each is an example of what, how, or for whom.
a. Should the company make its own spare parts or buy them from an outside vendor
b. Should the company continue to service the equipment that it sells or ask customers to use independent repair companies
c. Should a company expand its business to international markets or concentrate on the domestic market
d. Should the company replace its own communications network with a "virtual private network" that is owned and operated by another company
e. Should the company buy or lease the fleet of trucks that it uses to transport its products to market