competitive acquisitions may not award the contract to the lowest bidder. “This process permits tradeoffs among cost or price and noncost factors and allows the government to accept other than the lowest priced proposal. The perceived benefits of the higher priced proposal shall merit the additional cost, and the rationale for tradeoffs must be documented in the file” (Murphy, 2009). Being awarded cost-reimbursement contract would be best for a contractor because most, if not all, of the risk falls on the
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approach (with the appropriate discount rate) is the method that makes the answers the clearest. #12 The user cost represents the opportunity cost of not being able to extract the resource in the future. The user cost must rise at the rate of interest for the firm to be maximizing profits. In a competitive market, a firm will set price equal to marginal extraction cost plus the user cost. P & R Chapter 15 Exercises: 3, 4, 6, and 7 #3 We just calculate $80 + $80/(1+r) + $80/(1+r)2 + ... $80/(1+r)5
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but we also serve Paint Industry. Due to global rise in demand of Paint and coating by 5.2% in which Asia is the fastest growing continent among others, hence we planned to put our legs in Bangladesh considering several factors like low manpower cost, less regulations and governance, manpower productivity. We come up with Idea of manufacturing Cement Based Paint considering economy of Bangladesh and the choice of customers. Major idea behind this project was to cater the increasing demands of
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additional industrial robot it desires but that it can get the robot from another country in exchange for 9000 pizzas. Relate this information to the following statement: “Through international specialization and trade, a nation can reduce its opportunity cost of obtaining goods and thus ‘move outside its production possibilities curve.’” Production possibilities curves dictate that individual nations are limited to output combinations that fall within the parameters of its possibilities curve.
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exist without it. c. From Lesson 1B draw a PPC with increasing opportunity costs. Show geometrically that for equal gains in fish, the sacrifice in fruit gets progressively larger. Explain this. [you may use PowerPoint or Microsoft Word drawing or anything that works for you to draw it and save it for submission.] The more we use fish the less we produce fruit. This is since we do not want to waste the opportunity cost on fruit which provides less profit 2. Lesson 2 a. From
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operate outside of the curve. The opportunity cost to manufacture and produce each pack of cigarette is equivalent to producing jars of baby formula. Fewer packs of cigarette produce can lead to more jars of baby formula being produced. This shows someone reading or interpreting the graph to conclude that the economy is not operating at its full efficiency. At the end of the curve not many jars of baby formula can be made seeing that the opportunity cost for cigarettes for baby formula is
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the report is simply looking to control the increase in price volatility in the market for food. 26 countries were at risk of facing hunger strikes. To potentially solve the problem, the US and the European Union decided to subsidize, pay part of the cost of producing a good or service to keep the selling price low, biofuel (its’ high demand being a factor of the crisis) production as an alternative to crude oil, which would hopefully give farmers an incentive to shift production in biofuel crops. Furthermore
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box plant. This is a sound strategic move as Atlantic Corporation purchases 150,000 tons of linerboard from its competitors each year which could lead to problems such as lack of supply and increased cost prices. Construction of a new linerboard mill would be time consuming and the opportunity cost of lost revenue from this may exceed the benefits when the mill becomes operational. For Atlantic Corporation, it may face two scenarios: linerboard becoming unavailable or linerboard prices increase.
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bao2babablu@gmail.com. B. BACKGROUND: He is my elder brother and I choose him because I believe in what he does and I believe he can never hide anything from me. The business started as a cement depot. He supplies cement to various people but found opportunities of block molding on one of such supplies at the University Of Ilorin project, the contractor needed 50,000 units of block and needed a company/an enterprise that can supply it. Being the supplier of cement for this project, he negotiated with the
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specification at the top of the expected range. Meanwhile, I noticed that the segment drifts each month. It’s unlikely that I could catch the spot per month. What’s more, the prefect product requires a large amount of time and cost. As a new enterprise, we could not bear the opportunity cost. Customers want perfection, but it is impractical to have “prefect” productions. In many cases we have to settle for “great” products. Trade-offs: Promotion Budgets and Awareness After entering the marketplace, awareness
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