How would you justify the long-term nature of the contact

Assignment Help Microeconomics
Reference no: EM13190194

In a 1998 press release, Boeing Commercial Airplane Group (BCAG) announced that it was signing a 10-year contract with distributor Thyssen Inc. - a distributor of raw aluminum - valued at approximately $300 million. The contract reflects Boeing's effort to reduce costs and production bottlenecks resulting from supply shortages. The contract specifies prices and guarantees quantities of raw aluminum to be delivered to BCAG's suppliers. If you were the production manager at BCAG, how would you justify the long-term nature of the contact with Thyssen Inc.?

Reference no: EM13190194

Questions Cloud

How to translate the formula using the numbers : Demonstrate by determining the slope of "3x + 5y = 19." I understand that the formula for this is: M =(y2 - y1)/(x2 - x1) but I don't get how to translate the formula using the numbers in an equation. I really would like to understand this so I ca..
Does omega operate in a perfectly competitive market : Nonetheless, Omega earns zero economic profits because numerous competitors have entered the market over the last few years. Based on this information, does Omega operate in a perfectly competitive market Why or why not
Define procedure for determining the quantity of water : What is an alternative analytical procedure for determining the quantity of water
Fundamental themes of geography : Relative to the fundamental themes of geography proposed by the Association of American Geographers, communication and diffusion refer to
How would you justify the long-term nature of the contact : The contract reflects Boeing's effort to reduce costs and production bottlenecks resulting from supply shortages. The contract specifies prices and guarantees quantities of raw aluminum to be delivered to BCAG's suppliers.
What was the price of the materials if the sale tax is 5% : marta's checkbook shows that she wrote a check for 987$ for building materials. what was the price of the materials if the sale tax is 5% ?
Define a chemist has cyclohexanone : Imagine that a chemist has cyclohexanone, triphenylphosphine, butyllithium, and 2-bromobutane.
How large radio telescope would we need to detect signal : Consider a civilization broadcasting a signal with a power of 2.0×10^4 watts. The Arecibo radio telescope, which is about 300 meters in diameter, could detect this signal if it is coming from as far away as 141 light-years.
Find the real number restrictions on x in the expression : Find the real number restrictions on x in the expression

Reviews

Write a Review

Microeconomics Questions & Answers

  Determining government intervention-externalities

Can you please provide a real-world example of product (a good or service) which has either an external cost or external benefit associated with it and propose the government policy to adjust for the over- or underproduction of this product.

  Calculate the net present value and benefit-cost ratio

Calculate the net present value and benefit-cost ratio for four different discount rates

  Calculate the current level of (equilibrium) gdp

)Now suppose that some of President's close political advisers are urging him to adjust taxes but not spending. Assuming the same initial level of G (=500), how would you advise the administration to adjust taxes to reach potential GDP?

  Find the opportunity cost of producing the first

find the opportunity cost (in tanks foregone) of producing the first, second, third, fourth, and fifth bridges. the production possibilities of tanks and bridges for a society.

  Calculate domestic equilibrium price and output combination

Assuming the industry is perfectly competitive, calculate the domestic equilibrium price and output combination and Is the outcome in part B desirable from society's viewpoint

  What happens to the marginal product of labor

How much will each firm produce and what is the shut-down price for the firm -  What is the largest quantity the firm can produce where the cost minimizing choice is to produce everything with production process 1?

  Define cross-price elasticity

Define cross-price elasticity, including substitutes and complements and provide a credible explanation of whether demand would tend to be more or less elastic for the share of consumer income devoted to a good.

  What are the consequences for farm output

What are the consequences for farm output as a result of this guaranteed price and what does the term "equilibrium" mean in the context of a market economy?

  Perfect competition is a model

Perfect Competition is a model of which examples are few and far between. Yet economists love to discuss this model. Explain why.

  Foreign exchange rate in us dollar and chinese yuan

Recently, there has been a lot of press about high lead content in toys made in China. This negative press can affect the foreign exchange rate in the United States dollar and Chinese yuan.

  What fiscal policies do you think caused the crisis

What monetary policies do you think caused the crisis 2. What were the effects of the policies implemented in reaction to the crisis 3. Do you think the solutions worked in the short term? In the long term? Fiscal policies 1. What fiscal ..

  Compute real gdp for each case

Using the production function shown above, compute real GDP for each case and capital is constant but labour is increasing. What property of the production function is displayed? Explain.

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