If a Firm Has No Excess Capacity, Which of the Following

question 99

Multiple Choice

If a firm has no excess capacity, which of the following is a sensible bidding strategy?

• A) Set a price to cover all costs.
• B) Base the bid on the incremental costs incurred because the job will contribute toward the company's profit.
• C) Base the bid solely on direct labor hours.
• D) Downplay the potential impact of competitors.
• E) Try to minimize the company's tax liability.

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Definitions:

Canada's Wetlands

Ecosystems characterized by the presence of water, supporting diverse plant and animal life, including species unique to these habitats.

West Coast Salmon

Salmon species found along the Pacific Coast of North America, facing challenges from overfishing, habitat loss, and climate change.

Sea Lamprey

An ancient, jawless fish known for its parasitic feeding habits, attaching to and feeding on the blood of other fish.

Overharvesting

The excessive harvesting of natural resources, leading to depletion or significant reduction in population densities.