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A half-dozen firms are competing to secure a highway contract from a local government via sealed bid. When bids are opened, the winning firm's bid is 40 percent below the next-lowest bid.
a. How might you explain such a low bid? Given such a bid, what risks does the winning bidder face? Explain.
b. Is such a low bid unambiguously "good" for the local government? What potential risk does the government face? (In terms of the auctioning party's risk, how does a procurement differ from an auction sale?) How might the government protect itself from this risk?
Describe an activity or process or product of your chosen company that exhibits economies or diseconomies of scale. Describe the source of the scale economy. How could the organization exploit the scale economy or diseconomy?
methamphetamine meth is an addictive synthetic drug made chiefly in small toxic labs stls in homes tents barns or hotel
Federal Funds Rate in order to achieve macroeconomic objectives.
A central city imposes a rent control law that places a binding ceiling on the rent that can be charged for an apartment. The suburbs of this city do not have aren't control law. What happens to the rental prices in the suburbs and to the equilibr..
An economist is interested in studying the incomes of consumers in a particular country. The population standard deviation is known to be $1,000. A random sample of 50 individuals resulted in a mean income of $15,000.
Globalization is inevitable and will continue to occur in the years to come. As organizations continue to globalize, cultural differences on ethical issues will continue to arise.
International trade is most likely to occur whenever a. one of the trading nations is self-sufficient b. all of the trading nations are self-sufficient c. one of the trading nations gains from trade d. each of the trading nations gains from trade
But it might happen that both ?rms want to expand or contract at the same time. Does this constitute an argument against geographical concentration?
Believing that the new workers were either lazy or inefficiently supervised (or possibly both), the CEO instructed the shop foreman to "crack down" on the new workers to bring their productivity levels up. Provide an alternative to cracking down as..
Identify the type of merger activity in industry or one with which you are familiar-horizontal, vertical, or conglomerate-and explain why you made that choice.
what impact will an unanticipated increase in the money supply have on the real interest rate real output and
If you hold shares in a corporation and management decides to plow back the company's earnings some year instead of paying dividends, what are the advantages and disadvantages to you
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