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Your company, Bright Paints, is one of a dozen companies manufacturing a special reflective paint used for traffic signs. The State Department of Transportation has called for tenders to supply 10,000 gallons of blue reflective paint to be delivered within two months. You can foresee fitting in a production run of the blue paint and have decided to bid on the job. You calculate your incremental costs for this job to be $76,200. This particular contract is standard, similar in all in respects to hundreds of contracts you have bid on over the past few years. Your pricing policy has been to apply a mark-up to incremental costs to arrive at the bid price. Your mark-up has been higher when you had plenty of orders and lower when you had few or no orders to fulfill. You have assembled data relating the mark-up rate used and the percentage of contracts won at each mark-up rate, as follows. a. Why would your company have bid with a zero mark-up on some past tenders? Why didn’t it win all of those contracts? b. What is the bid price that maximizes the expected contribution of the contract? c. Why, or why not, is the fixed-price mode of bidding likely to be the best one to use for this contract?
Does the lender gain or lose from this unexpectedly high inflation. Explain does borrower gain or lose.
Suppose that consumers decide to consume less (and therefore to save more) for any given amount of disposable income. Specifically, assume that consumer confidence (c0) falls. What will happen to output.
The marginal utility of a pizza is 20 utils, and its price is $2. If you buy one unit of each good, will you achieve consumer equilibrium? If not, how can greater total utility be obtained?
Illustrate what should the U.S. Congress and the Federal Reserve do about it. Write your individual answers to both questions listed above together not each minimum 300 words in essay format in APA style.
She understands that the market interest rate for similar investment is 9 percent. Suppose annual coupon payments. What is the present price of this bond.
Elucidate proponets of free market systems argue that free enterprise leads to more efficient production and better responses to changing consumers preferences.
Illustrate what level of control variable are net benefits maximized. Illustrate what is relation between marginal benefit and marginal cost at this level of control variable.
llustrate what are the quantities produced before and after the tax was imposed.
Illustrate what did classical economists assume about flexibility of prices, wages and interest rates. Illustrate what did this assumption imply about self-correcting tendencies in an economy in recession.
Illustrate what would be the new equilibrium price of hoods to the truck manufacturer.
Using production theory as a basis, is the CEO correct in his assumption that lazy workers or ineffective supervisors are to blame for the decline in productivity? What other explanations might be possible?
what is the least-cost input-combination of labor and capital and how much output is produced with that set of resources?
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