User Account

All Pages

How might you explain such a low bid

Assignment Help Microeconomics
Reference no: EM13880048

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?

Reference no: EM13880048

Questions Cloud

Identify the three areas of an auditor work that : Identify the three areas of an auditor work that are significantly impacted by the presence of IT accounting systems.
Yield curve more often sloped upward-downward or been flat : Over the past thirty years, has the yield curve more often sloped upward, downward or been flat? Explain why you believe this is so and relate your findings to the expectations theory of the term structure of interest rates. Are there other explanati..
Macy''s department stores and furniture galleries : 1.Macy's, Inc. , operates about 810 Macy's department stores and furniture galleries.
What is the book value of the equipment at end of two year : Capital equipment costing $250,000 today has 50,000 salvage value at the end of five years. If the straight-line depreciation method is used, what is the book value of the equipment at the end of two years?
How might you explain such a low bid : 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 f..
Differentiate between a compliance audit and an operational : Differentiate between a compliance audit and an operational audit.
What growth rate is expected for companys stock price : The stock price of Webber Co. is $54.20. Investors require a return of 12 percent on similar stocks. If the company plans to pay a dividend of $3.75 next year, what growth rate is expected for the company’s stock price?
What is the underlying purpose of the restrictions on cpa : What is the underlying purpose of the restrictions on CPA firms in Section 201 of the Sarbanes Oxley Act?
How can the patient engage in self-care practices : How can the patient engage in self-care practices

Reviews

Write a Review

Microeconomics Questions & Answers

  D the energy crisis of the 1970s and again in the

during the energy crisis of the 1970s and again in the last 5 years congress bemoaned the price gouging and

  Determine the outputs of a and b of given question

If the available amount of raw materials and labor are 13,400 pounds and 7,800 h, determine the outputs of A and B.

  What is the present value of a uniform stream

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

  Explain shortage and surplus in market

a.) Illustrate using a fully labeled supply and demand graph (label all the axes and any lines you put in your graph) what such an artificial price looks like. b.) Explain what the results of such a move are for the graham cracker market. ..

  An entrepreneur runs the business that hires

Consider a simple economy, with just three occupations: subsistence producer, industrial worker, and entrepreneur. Subsistence producers can produce some fixed amount valued $2,000 with their labor. An industrial worker can earn a wage w. An entrepre..

  Sustained increase in the demand for the monetary base

When the Fed forecasts a sustained increase in the demand for the monetary base, the staff of the Fed is likely to meet this demand through:

  Compare the equilibrium price and quantity of consumer

Compare the equilibrium price and quantity of consumer loans before and after the Truth in Lending Simplification Act.

  How provision of a public subsidy to the arts might restore

Use a diagram to show how provision of a public subsidy to the arts might restore optimal allocation and explain why achieving this aim might be difficult in practice.

  Question on cross-price elasticity

The demand for personal computers can be characterized by following point elasticity = -5, cross-price elasticity with software = -4, and income elasticity = 2.5. Indicate whether each of following statements is true or false, and describe your an..

  Describe the market demand curve algebraically

There are two types of customers in a market for sheet metal. Let P represent the market price. Describe the market demand curve algebraically. In other words, show how the quantity demanded in the market Q depends on P.

  Economic growth of france with that of the uk

Contrast the economic growth of france with that of the UK. What differences are there in C,I, and G between the Eurozone and the UK?

  What is the equilibrium output and profit

These multiple choice questions related to Economics. The first question is about economic profits and the second question is about calculating equilibrium output and profit.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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