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Name Instructor Course Date Public Administration Question 1- Explain the role of production, bargaining and opportunism costs in relation to assessing public policy initiatives. Public policy is mainly used to assess the costs of any proposed policy regarding production, bargaining, and opportunity costs. Production costs refer to the overall expenses of a production process, such as labor including both human labor and machine labor and raw materials. The cost of transporting raw materials is also included in the production cost, packaging costs of the final products are also included in the production cost. Bargaining costs relate to costs used to develop and monitor an agreement, as well as any other dispute aspects likely to arise between parties. It’s important for a business to cut bargaining costs of its investors by dealing with the issue of bias in business. The government plays a major role in ensuring the effectiveness and fairness of a negotiation process by providing the necessary incentives and a bargaining endpoint and creates a linkage between the regulatory body and the beneficiaries of the negotiations. Finally, opportunism cost is a situation where one organization, privatized public services, they offer the services with little knowledge from the government or no knowledge at all. In case of a subcontract, a high-level government agency is tasked with the process oversight and accountability of the service delivery by the private entities. Opportunism generally happens when people are self-centered, they take advantage of others for their own gain by making false promises or changing terms of business to their advantage. Question 2-
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