Answer: Option A
Explanation: Outsourcing can be defined as the business practice under which the company transfers its certain jobs to other labor force in foreign countries.
This system is majorly employed by the organisations because of low price labor in foreign countries.
From the above explanation we can conclude that option A is correct.
True it is a non market transaction
Answer:
The marginal revenue product has a property known as diminishing marginal return.
The property of diminishing marginal return tells us that theres an amount of input that maximizes revenue, and after this point is reached, additional units of input less addional revenue until diminishing it.
In this example, the Collection Agency is way past the maximum revenue point (located at $34.00 per worker). It needs to lay off employees until it goes from the current $40.00 marginal revenue product, until $34.00 marginal revenue product.
