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

question 66

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 labour hours.
• D)Downplay the potential impact of competitors.
• E)Try to minimize the company's tax liability.

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Definitions:

WISC-IV

An abbreviation for the Wechsler Intelligence Scale for Children - Fourth Edition, a widely used test designed to measure the intelligence of children ages 6 to 16.

Creativity

The capacity to generate unique and novel concepts, or to create something innovative or creative.

Intelligence

The ability to learn, understand, and apply knowledge, to think abstractly, and to solve problems.

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Practical intelligence that involves skills and abilities used in daily life situations.