You are the manager of a firm that competes against four other firms by bidding for...

You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your product is better than the competition, the government purchasing agent views the products as identical and purchases from the firm offering the best price. Total government demand is Q = 700 -4P and all five firms produce at a constant marginal cost of $40. For security reasons, the government has imposed restrictions that permit a maximum of five firms to compete in this market; thus entry by new firms is prohibited. A member of Congress is concerned because no restrictions have been placed on the price that the government pays for this product. In response, she has proposed legislation that would award each existing firm 20 percent of a contract for 480 units at a contracted price of $55 per unit. If this legislation is passed, by how much should you expect your profits to change?

Expert Solution

Rahul Sunny answered 1 year ago

4. You are the manager of a firm that competes against four other firms by bidding...

4. You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your product is better than the competition, the government purchasing agent views the products as identical and purchases from the firm offering the best price. Total government demand is Q = 1,000 − 10P, and all five firms produce at a constant marginal cost of $40. For security reasons, the government has imposed restrictions that permit a maximum...

You manage a company that competes in an industry that is comprised of five equal-sized firms....

You manage a company that competes in an industry that is comprised of five equal-sized firms. A recent industry report indicates that a tariff on foreign imports would boost industry profits by $30 million—and that it would only take $5 million in expenditures on (legal) lobbying activities to induce Congress to implement such a tariff. Indicate whether each of the following statements are true or false. - It is an equilibrium for your company to pay the $5 million in...

Select a firm that competes in an industry in which you are interested. Drawing upon published...

Select a firm that competes in an industry in which you are interested. Drawing upon published financial reports, complete a financial ratio analysis. Based on changes over time and a comparison with industry norms, evaluate the firm’s strengths and weaknesses in terms of its financial position. Looking at using Nike.

Select a firm that competes in an industry in which you are interested. Drawing upon published...

Select a firm that competes in an industry in which you are interested. Drawing upon published financial reports, complete a financial ratio analysis. Based on changes over time and a comparison with industry norms, evaluate the firm’s strengths and weaknesses in terms of its financial position. The company that I am interested in is Kyocera Document Solutions. Are you able to help with this? I need a SWOT type analysis using their financials.

Select a firm that competes in an industry in which you are interested. Drawing upon published...

Select a firm that competes in an industry in which you are interested. Drawing upon published financial reports, complete a financial ratio analysis. Based on changes over time and a comparison with industry norms, evaluate the firm’s strengths and weaknesses in terms of its financial position. I would like to have a financial ratio analysis of Alibaba.

how are gains to bidding firms related to exchange rates?

Assume you are a partner in a successful computer consulting firm bidding for a contract with...

Assume you are a partner in a successful computer consulting firm bidding for a contract with a large insurance company. Your chief rival is a firm that has usually offered services and prices similar to yours. However, from a new employee who used to work for that firm, you learn that it is unveiling a new competitive price structure and accelerated delivery dates, which will undercut the terms you had been prepared to offer the insurance company. Assume you have...

Suppose you are th chief executive officer of a manufacturing firm that is bidding on a...

Suppose you are th chief executive officer of a manufacturing firm that is bidding on a government contract. In this situation, the firm with the lowest bid will win the contract. Your firm has completed developing the bid and is ready to submit it to the government when you receive an anonymously sent packet containing a competitior's bid that is lower than yours. If your firm loses the bid, you may need to lay off some employees and your profits...

You are the manager of BlackSpot Computers, which competes directly with Condensed Computers to sell high-powered...

You are the manager of BlackSpot Computers, which competes directly with Condensed Computers to sell high-powered computers to businesses. From the two businesses’ perspectives, the two products are indistinguishable. The large investment required to build production facilities prohibits other firms from entering this market, and existing firms operate under the assumption that the rival will hold output constant. The inverse market demand for computers is P = 5,100 – .5Q and both firms produce at a marginal cost of $750...

Determine the steps in the sealed bidding process. Next, create an argument for or against the...

Determine the steps in the sealed bidding process. Next, create an argument for or against the sealed bidding process as a method of lowering the government’s potential expense for a good or service. Justify your response with one example.

Question

You are the manager of a firm that competes against four other firms by bidding for...

Solutions

Expert Solution

Related Solutions