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After a competitive bidding process, Firm G wins a contract to collect and dispose of Firm H's hazardous waste for $1,000 per year. Firm G's labor costs are $200 per year, and because of the unique nature of the waste, it has to invest $8,000 in a special made-to-order furnace-money that it could otherwise have put in the bank at 10 percent interest. Thus, the annualized cost of the investment is $800. So specialized is the furnace that, were the contract canceled, Firm G could only scrap it and receive $1,500 for the metal. a) By how much could Firm H threaten to cut the fee if subsequently some dispute arises over the terms of the contract, or if the contract comes up for renewal?
b) By how much could Firm H threaten to cut the fee if the furnace can be adjusted, at a cost of $3,000, to handle the waste of Firm J, which is willing to pay $700 per year for that service?
The rent control agency of New York City has found that market demand is QD=100-5P With quantity measured in tens of though sands of apartments and price, the monthly rental rate,
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discuss the effect that the activities of a trade union might have on an economy?
#question.Q8. In 1961, Germany faced the dilemma of an external surplus and a booming economy. As a result, speculative capital flowed into Germany and the Germans felt obliged to
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