A CRITICAL THINKING Making Decisions In order to
survive, GM closed 14 plants and fired 47,000 workers. As it returned to profitability and ñ sales increased, workers had to be hired back. At what point would Akerson decide that no more workers could be added to the workforce at a particular plant?

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.