Describe what would support or oppose the legislation

Reference no: EM13234796

You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your products is better than the competition, the government purchasing agent views the products as identical and purchases from the firm offering the best price. Total government demand is Q = 750 - 8P and all five firms produce at a constant marginal cost of $50. For security reasons, the
government has imposed restrictions that permit a maximum of five firms to compete in this market; thus entry by new firms is prohibited. A member of Congress is concerned because no restrictions have been placed on the price that the government pays for this product. In response, she has proposed legislation that would award each existing firm 20% of a contract for 270 units at a contracted price of $60 per unit. Would you support or oppose this legislation?

Reference no: EM13234796

Questions Cloud

Define what is the cu in the metal oxide product : What is the %Cu (by mass) in the metal oxide product formed when Cu2CO3(OH)2 decomposes upon heating above 200°C?

Find the specific heat capacity of the unknown material : A 0.15-kg of aluminum contains 0.2 kg of water. Initially, the water and the cup have a com- mon temperature of 18 0C, find the specific heat capacity of the unknown material

Explain how to support the collusive level of advertising : At a time when demand for ready-to-eat cereal was stagnant, a spokesperson for the cereal maker Kellogg's was quoted as saying " for the past several years, our individual company growth has come out of the other fellow's hide.

Minimize total holding and order cost : How many units of Product 1 and Product 2 should be ordered at a time in order to minimize total holding + order cost?

Describe what would support or oppose the legislation : You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your products is better than the competition, the government purchasing agent views the products as identical

What will be the frequency of oscillations : The springs of a 1700-kg car compress 4.90mm when its 63.0-kg driver gets into the driver's seat. If the car goes over a bump

Which work station should each worker be assigned : To which work station should each worker be assigned in order to minimize the flow time of the assembly line? What is the associated flow time?

Explain the methylamine hydrochloride dissociates in water : The methylamine hydrochloride dissociates completely in water to form methylammonium ion (CH3NH3+) and chloride ion.

Write the code to compute s on the basis of these values : In physics, a common useful equation for finding the position s of a body in linear motion at a given time t, based on its initial position s0, initial velocity v0, and rate of acceleration a, is the following:

User Account

All Pages