Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 8

The Boswell Medical Center is the only hospital in a rural community. It requires significant janitorial services to clean its buildings and equipment. It also requires a relatively large lab for conducting tests of various types (for example, MRIs, blood tests, ultrasound tests). Do you think that Boswell is more likely to outsource its janitorial services or lab work Explain.