Cumberland Computers will be buying processing chips needed for its laptops and tablets from external suppliers instead of manufacturing them in its own facilities. How will this decision affect the firm?

Multiple Choice

The firm will have more flexibility in purchasing and comparing prices of goods and services.

The firm's administrative costs will be low because of necessary bureaucracy.

The firm will be protected against the principal$-$agent problem.

The firm will have high$-$powered incentives, such as hourly wages and salaries.