Sambo 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?

$$ The firm will have high$-$powered incentives, such as hourly $5$ Nitages and salaries.

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

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

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