In many modern us industries the following relationships, Ask an Expert

Economics

In many modern U.S. industries the following relationships seem to be predominant:

What factors might explain these patterns?

Small firms are more likely to outsource production of inputs than are large firms;

Standard inputs (such as a simple transistor that can be used by several electronics manufacturers) are more likely to be outsourced than "tailor-made" inputs (such as a circuit board designed for a single manufacturer's specific needs).

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Microeconomics, Economics

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