Bidder on work contract may bid lower

Assignment Help Business Economics
Reference no: EM131085015

Sometimes, a bidder on a work contract may bid lower than what would maximize his/her profit from the contract and the reason for that is to create goodwill (to increase expected future business from the buyer). How would you value the goodwill that is obtained in this way?

In 300 words or more NO COPY AND PASTE

Reference no: EM131085015

Questions Cloud

Find the probability that exactly 50 will be heads : PROBLEM 3.Determine the probability of "4 of a kind" in a 5-card poker draw.Submit thenumerical answerfollowed by MATLAB code. The MATLAB code should simulate the results of 100,000 experiments of poker hands.
The impact of globalisation on organisational strategy : You are required to answer all questions. Your initial submission must include BOTH assignments. If one or more assignments are referred, you can resubmit these on an individual basis, but not in the first instance.
Borrowed to buy housing on the expectation that home prices : In retrospect, it is clear that the U.S. economy was in a precarious position in 2006. Trillions of dollars had been borrowed to buy housing on the expectation that home prices would keep on rising. In 2006 the house prices fell; what happened in rel..
Identify the methods for toxicant elimination : Identify the methods for toxicant elimination. Choose one of the methods and explain how a toxicant is eliminated. Explain the importance of the cytochrome P-450 enzyme in toxicant biotransformation.
Bidder on work contract may bid lower : Sometimes, a bidder on a work contract may bid lower than what would maximize his/her profit from the contract and the reason for that is to create goodwill (to increase expected future business from the buyer). How would you value the goodwill that ..
Government to enact contractionary fiscal policy : Some politicians have suggested that the United States enact a constitutional amendment requiring that the federal government balance its budget annually. Explain why such an amendment, if strictly enforced, would force the government to enact a cont..
Cultural aspects affect the level of country potential GDP : Say that the average worker in Canada has a productivity level of $30 per hour while the average worker in the United Kingdom has a productivity level of $25 per hour (both measured in U.S. dollars). Over the next five years, say that worker producti..
What is the tension in each wire : What is the tension in each wire?
How many months will it take for facebook : How many months will it take for Facebook to grow its user base to two billion users?

Reviews

Write a Review

Business Economics Questions & Answers

  What is consumer surplus and producer surplus

What is consumer surplus and producer surplus? Create a diagram to explain your answer. On the same diagram, show what happens if a limit is imposed on the amount of a good that can be sold in the marketplace

  Explain why a nation that imposes tariffs on imported goods

Explain why a nation that imposes tariffs on imported goods may find its welfare improving should the tariff result in a favourable shift in the terms of trade.

  Cause movement along the demand curve for cereal

Complete the following table by indicating whether an event will cause a movement along the demand curve for cereal or a shift of the demand curve for cereal, holding all else constant. A decrease in the price of cereal (Movement Along or Shift?)

  What will be the equation for the new supply curve

What will be the equation for the new supply curve once the subsidy is in place - what is the new equilibrium price for this good once the subsidy is in place?

  Elucidate how would these change incentive structure facing

If deposit insurance were abolished, elucidate how would these change incentive structure facing deposit theory institutions.

  Why has uber cut prices substantially

A) Why has Uber cut prices substantially? ($500) B) What assumptions has Uber made about price elasticity of demand among its customers? ($500) C) If customer demand is price inelastic, will total revenue rise or fall? Explain your answer in 1-2 sent..

  What is the cournot equilibrium

Two identical firms compete in competition (Cournot competition) in the same market where the inverse demand is P(Q) = 100 − Q. The constant marginal cost of both firms is 10. Find the best response function for each firm. What is the Cournot (simult..

  The hhi for automobiles is 2350 for sporting goods is 161

the hhi for automobiles is 2350 for sporting goods is 161 for batteries is 2883 and for jewelry is 81. which of these

  Find shellys optimal amount of consumption and leisure

Shellys preferences for consumption and leisure can be expressed as U(C, L) = (C − 200)(L − 80) (1) This utility function implies that Shellys marginal utility of leisure is C − 200 and her marginal utility of consumption is L − 80. Find Shellys opti..

  What would you consider to evidence of tit-for-tat pricing

Suppose that you were an industry analyst trying to determine if the leading firms in the automobile manufacturing industry are playing a tit-for-tat pricing game. What real world data would you want to examine? What would you consider to be evidence..

  Suppose the international relative price

Suppose in the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. Show that the United States is bette..

  How monopolies in real world earn huge rates of return

Monopoly is often heralded as the ultimate goal of a firm, to be the only seller in a market. however the picture might not be as rosy as it appears if you actually reach monoply status. Why is that. How monopolies in real world earn huge rates of..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd