When Buying Highly Technical, Few-Of-A-Kind Products Such as Hydroelectric Power

question 231

Multiple Choice

When buying highly technical, few-of-a-kind products such as hydroelectric power plants, governments have found that general contractors are reluctant to specify a formal, fixed price for the procurement. Therefore, these contractors use ________ to compensate them for any cost overruns.

• A) at-market pricing
• B) experience-curve pricing
• C) cost-plus-fixed-fee pricing
• D) standard markup pricing
• E) yield management pricing

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Definitions:

Observational Learning

A learning process through which behaviors are acquired by watching and imitating the actions of others.

Semantically Related Thoughts

Ideas or concepts that are connected or associated with each other through their meanings.

Institutionalised Aggression

Aggression that is given formal or informal recognition and social legitimacy by being incorporated into rules and norms.

Formal Recognition

The official acknowledgment or validation of an individual's or entity's status, achievements, or qualifications.