Suppose You Manufacture 10 Million Hard Drives Per Year Specifically

question 29

Short Answer

Suppose you manufacture 10 million hard drives per year specifically for Dell laptop computers.Suppose your average variable cost C=$20/unit,annualized cost of investment to build a hard drive factory I=$30 million,and the market price (bailout market price in the event Dell does not buy)Pm=$22/unit.If Dell agrees to purchase the 10 million hard drives at a price P*=$25/unit and subsequently renegotiates to only purchase for $22.50/unit,what has Dell increased its own profits by?

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Definitions:

Unethical Situations

Scenarios or conditions where actions or decisions violate moral principles or standards of conduct, often leading to harm or unfairness.

Stakeholder Expectations

The beliefs or standards that stakeholders hold about a business's performance or behavior, which can significantly influence business decisions.

Internal Pressures

Forces within an organization or individual that influence or compel certain behaviors or decisions.

Obedience to Authority

The psychological phenomenon where individuals comply with instructions from an authority figure, even if they might have personal objections.