8. Hooli Computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. How will this decision affect the firm? A) The firm will be protected against the principal-agent problem. B) The firm's administrative costs will be low because of necessary bureaucracy. C) The firm will have more flexibility in purchasing and comparing prices of goods and services. D) The firm will have high-powered incentives, such as hourly wages and salaries. 9. Massive Dynamic Computers sources the components for its laptops from various suppliers on the market. The firm pays $100 for processors, S35 for disk drives, $50 for screens, $10 for memory, and $40 for graphics and wireless internet cards. Massive Dynamic has determined that it would cost $200 per unit to produce all of the necessary components in its in-house manufacturing facility. In this scenario, Massive Dynamic should A) Continue to outsource production. B) Vertically integrate. C) Exit the laptop industry. D) Diversify its activities. 10. Condax Electronics relied on a large chain of consumer electronics stores to sell its tablet computers, cell phones, and televisions and also to provide customer service and technical support. However, that retailer outsourced its service departments, and customers began to complain that they could not get reliable tech support for Condax products. In order to solve the problem, Condax Electronics should A) Continue to outsource its services B) Start to offer different products and services C) Undertake forward integration D) Should undertake backward integration