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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