Yvern trinkets regional June 2015

This topic has 3 replies, 2 voices, and was last updated 8 years ago by Ken Garrett.

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February 4, 2018 at 3:42 am #434961
parisnaaa
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Sir in a when A and C products can be outsourced , why demand for labour will be reduced when spare capacity will be used up?
When the company produce more B and D products due to spare capacity, it will require more labour so demand for labour should be increased not decreased.
February 4, 2018 at 8:26 am #435002
Ken Garrett
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As the answer says in aboutnthe 3rd paragraph:

“If products A and C are subcontracted, the company would then have spare capacity. There is no evidence from the scenario that there is any demand for further production for B and D. ….”
February 4, 2018 at 1:18 pm #435045
parisnaaa
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Sir I understand that the company will have spare capacity when A and C are subcontracted. I’m just asking what will happen to the demand when A and C products are outsourced?
February 4, 2018 at 9:19 pm #435114
Ken Garrett
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Outsourcing and subcontracting are the same. You outsource to subcontractors.
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