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Firm Coordination: In-House vs. Freelance
A technology startup initially outsourced its software testing to various freelance contractors, paying them for each completed project. The startup has now decided to hire a team of full-time, salaried quality assurance engineers to handle all testing internally. Based on the view that relationships within a firm are governed by authority rather than market prices, analyze the fundamental shift in how the startup will coordinate its software testing activities. In your analysis, explain the key differences between the two arrangements.
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.6 The firm and its employees - The Economy 2.0 Microeconomics @ CORE Econ
Analysis in Bloom's Taxonomy
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