Bidder on a work contract may bid lower

Assignment Help Business Economics
Reference no: EM131193624

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

Reference no: EM131193624

Questions Cloud

Identify a current fad diet : Identify a current fad diet.- Give a description of the diet and the restrictions, etc.- Provide two days of meal plans.
For the economy in terms of eliminating old infrastructure : Using the broken window fallacy as described in “In The News” (p. 14 of Principles of Microeconomics), explain why some journalists, policy makers, and others proclaim that natural disasters are good for the economy in terms of eliminating old infras..
Case study operation get rich or die tryin : Review the attached Case Study Operation Get Rich or Die Tryin. Describe the impact that is had for the organizations involved. Also describe the repercussions it has most likely had on customers and other online retailers.
Represent the fixed point decimal number : (a) Represent the fixed point decimal number + 88.875 in IEEE 754 floating point format. Express your final answer in hexadecimal showing all the working.
Bidder on a 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 ..
What would you do if you were steve morgan : Who are the stakeholders in this situation? What are the ethical issues involved in this situation? What would you do if you were Steve Morgan?
Greatest threats against data : Many security experts consider social engineering as one of the greatest threats against data. Use the internet to research social engineering. Locate one incident and summarize the attack (Ciampa, 2007). Respond to the following:
Current inflation rate is below the target inflation rate : Use the Taylor rule to calculate the target for the federal funds rate for October 2012, using the following information: equilibrium real federal funds rate of 2%, target inflation rate of 2%, current inflation rate of 1.2%, and an output gap of 5.9..
Prepare equity research reports for australian listed firms : Prepare equity research reports for two Australian listed firms. These two firms should be from two different industries.

Reviews

Write a Review

Business Economics Questions & Answers

  About the state of economy and future productivity growth

If you were Chairperson of the Federal Reserve. Show each of the following shocks on an IS-MP diagram.  Consumers become pessimistic about the state of the economy and future productivity growth. Improvements in the information technology increase pr..

  How exactly to determine the allocation

I know that the answer will be somehow related to the amount of marginal sales per day, but dont know how exactly to determine the allocation.

  Emphasizing the difference between money and income

Why do economists insist on emphasizing the difference between money and income? Why is this difference important in macroeconomics?

  What is basic method for adjusting for inflation

Why is it important to adjust for inflation when comparing nominal quantities at different points in time. What is basic method for adjusting for inflation.

  What is the value of the firm

Suppose in a firm, the probability of worker injury is = 1/20. The losses from an injury is $100,000. Suppose the cost of residual uncertainty is $3,000 and the cost from other elements of cost of risk is zero. The value of firm without risk is $2 mi..

  Marginal utility for cups of coffee is constant

Suppose that Omar’s marginal utility for cups of coffee is constant at 3.5 utile per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the..

  Sofa manufacturer presently is using

sofa manufacturer presently is using 50 workers also 30 machines to produce 5,000 sofas a day.

  Rational expectations theory-short-run stabilization policy

Rational expectations theory suggests that? short-run stabilization policy

  Made requesting production of documents

Scoop Masters Inc. has been charged by Fab Flavors Corp. with stealing Fab Flavors' patented process for making ice cream. After the papers are filed, Scoop Masters begins shredding all documents pertaining to its ice cream-making process. Since no m..

  Calculate the elasticity of demand

1. Data for the market for graham crackers is shown below. Calculate the elasticity of demand between the following prices.

  How would you present the statistical information

Assume you are compiling your research report. How would you present the statistical information within this case to the IndustryWeek decision maker, the manager who must decide whether or not to continue to publish reader service cards?

  Labor and capital costs

If each test provides$6 net marginal revenue before labor and capital costs, is expansion advisable? Show all your work and explain your answer well.

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