Contracting Costs

Running Head : CONTRACTING COSTS: NameInstitution Contained herein is an abbreviation of contracting costs in scotchs with an emphasis on closed economy found in prisoner of war (Prisoners of fight . The analysis is based on experiences and observations made by R . A . Radford when he was a prisoner of war during the succor World War (See Radford s 1945 Economics Organization of a POW Camp . Contracting costs are incurred between businesses and their interactions with consumers item-by-item businesses concentrate on areas of comparative advantage and leave other firms to supply specific inputs . This saves time that is now used for much productive purposes . Consumers incur these costs through their reliance on businesses to supply various goods and services consumers concentrate on their undertakings which they pop off to be most productive .

The POW economy draw in Radford s highlights the role of currency and middlemen in any economic setting - the two aspects would be discussed in this analysisRadford s POW economy s use of cigarettes as currency empathizes the economic understanding that bills (medium of exchange ) is any trade good that meets the following criteria : first , the commodity has to be scarce in the said economic shaping . Cigarettes met this requirement as they were not readily available in POW camps they had to be sourced privately from outside , which was not light(a) and also being provided in rations by the Red scratch Society . Second , the commodity has to be generally true by both sellers and buyers . Authorities...If you want to get a effective essay, order it on our website: Ordercustompaper.com

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