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

  Example of implicit cost for a firm

Which of the following is an example of implicit cost for a firm?

  How would the crop failure affect the price of wheat

Suppose bad weather decreases the wheat harvest by 12 percent. If the price elasticity of demand for wheat is 0.6 in absolute terms, how would the crop failure affect the price of wheat? Would the crop decrease benefit or harm wheat farmers?

  A country is described by the solow growth model

A country is described by the Solow growth model. It has a population growth rate of 5 percent and a rate of technological progress of 3 percent. It is currently at the steady state. What is the country is growth rate for output and output per worker..

  Explain what is the short-run condition for the monopolist

EXplain what is the short-run condition for the monopolist and what output changes would you recommend.

  Monetary policy actions affect usbusinesses-households

During the 2008 financial crisis and the subsequent recession, how did major U.S. banks respond to the actions of the Federal Reserve? How did those monetary policy actions affect U.S. businesses and households? 3. How were the actions of the Federal..

  The daily demand for a product-standard deviation

The daily demand for a product is 17 units with a standard deviation of 2.6 units. The review period is 30 days with a lead time of 14 days. Management has a set policy of satisfying 95% of demand from items in stock. At the beginning of the review p..

  Purchasing power parity predict the nominal exchange rate

Given the above information that the US CPI = 235, UK CPI = 215, and the current nominal exchange rate = .85 pound per dollar, what does the Theory of Purchasing Power Parity predict the nominal exchange rate to adjust to? Enter your answer in pound(..

  Budget set of an individual in the monetary equilibrium

Consider an economy inhabited by overlapping generations of two-period-lived individuals, each of whom receives an endowment of y in the first period of life and none in the second. The population of newborns grows as follows: Nt = nNt−1, where n > 1..

  Explain why new soft drink is the most profitable strategy

If you were a manager at PepsiCo, would you try to convince your colleagues while introducing the new soft drink is the most profitable strategy.

  Stability of european monetary system exchange rates

Why might European Monetary System provisions for the extension of central bank credits from strong-to weak-currency members have increased the stability of European Monetary System exchange rates?

  Suppose a firm has an annual budget

In order to host the Winter Olympic Games, the city of Vancouver incurred a large debt, which will have to be repaid over time. Reflecting on this fact, one Vancouver resident complained, “The average guy is going to see his taxes increase” [Austen, ..

  Qread through the budget speech presented by the minister

q.read through the budget speech presented by the minister of finance on 22 february 2012. explain in detail whether

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