In Certain High-Cost Defense Contracts Involving New Weapons and Equipment

question 74

Multiple Choice

In certain high-cost defense contracts involving new weapons and equipment, contracts are rarely subject to competitive bidding because:

• A)the government is concerned that one firm might monopolize defense contracts
• B)there is an implicit agreement among defense contractors to "share contracts"
• C)all defense contractors have essentially the same cost structure
• D)None of these answers is correct.

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Definitions:

Opportunity Cost

The cost of the next best alternative foregone when making a decision.

Sweaters

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Cookies

In computing, cookies are small text files stored on a user's device by a web browser, containing information about the user's website visits, preferences, and session details.

Division Of Labor

The allocation of different parts of a manufacturing process or task to different individuals in order to improve efficiency.