1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
KonstantinChe [14]
3 years ago
13

1. Rosa Green estimates the cost of future projects for a large contracting firm. Rosa uses precisely the same techniques to est

imate the costs of every potential job and formulates bids by adding a standard profit markup. For some companies, to which the firm offers its services, there are no competitors also seeking their business, so Rosa's company is almost certain to get these companies as clients. For these jobs, Rosa finds that her cost estimates are right, on average. For jobs where competitors are also vying for the business, Rosa finds that they almost always end up costing more than she estimates.
a. True
b. False

2. Rosa is less likely to win the jobs where she underestimates the costs, causing her to experience the winner's curse.

a. False
b. True
Business
1 answer:
-BARSIC- [3]3 years ago
3 0

Answer:

1) a. True

Rosa is almost always right when she knows that her company is a monopoly, i.e. has no competition, but is generally wrong when her company has to compete with other contractors. It is simple, a monopolist can decide which markup percentage to use, and can use a really high one, but when competition exists, markups are not so high and profits not so abundant. That is why she almost always gets it wrong when having to deal with other competitors.

2) a. False

The winner's curse usually happens when someone wins a bid over some contract or asset, but then they realize that the actual price of the contract or asset was lower than the bid. E.g. in an auction, two people are fighting over to see who buys an antique car which increases the price of the car way beyond the real market value. But it can also happen to a company that offers very low prices, and then after they won a contract, cannot perform properly because their actual costs are higher.

When a company makes an offer, they are certain about the price of the contract and they should know the value of the services or goods that they are offering. If Rosa underestimates her costs, and prepares her offer using unrealistically low costs, then she will probably win the bid but end up losing money.

You might be interested in
Your friends know that you understand a lot about computers, both the technical details of how they operate as well as informati
Rainbow [258]

Answer:

a.)Customers using freeware can personalize the software to meet their needs.

Explanation:

Freeware is a software that any person can download, install and use for free. However, the code in the software can´t be modified in order to personalize it without the owner's permission as it has copyright.

6 0
3 years ago
Does anyone know any good spells
son4ous [18]

Answer:

abra cadabra

Explanation:

8 0
3 years ago
Read 2 more answers
Suppose NanoSpeck, a biotechnology firm, is selling stocks to raise money for a new lab—a practice known as finance. Buying a sh
marishachu [46]

Answer: Bond holders                                          

                 

Explanation: In simple words, bondholders refers to the creditors of the organisation. The holders of the bond are not the owners as they are paid fixed interest and are not able to participate in the decision making of the company.

In the event of liquidation, bondholders are paid first because it is assumed that the decision makers should be punished for the liquidation and hence they should be paid at last.

5 0
3 years ago
Given the following information for a retail company, what is the total cost of goods purchased for the period? Purchases discou
BigorU [14]

Answer: $298,800

Explanation:

Cost of goods purchased = Gross merchandise cost + Transportation-in (Carriage inwards) - Purchase discount - Purchase returns

= 304,000 + 6,700 - 3,500 - 8,400

= $298,800‬

8 0
3 years ago
Visa cards, gas cards and department store cards are all
34kurt
Cards,,,,,,?????????
3 0
3 years ago
Other questions:
  • A project has an initial cost of $6,500. the cash inflows are $900, $2,200, $3,600, and $4,100 over the next four years, respect
    11·1 answer
  • How is the current progressive tax system unfair?
    10·1 answer
  • The janitor at a school discovered a leak in a pipe. the janitor found that it was leaking at a rate of 99 fl oz per minuteminut
    10·1 answer
  • Westford Corporation has $185 million dollars of interest-bearing debt outstanding at the end of fiscal 2014 year. In addition,
    13·1 answer
  • Why were US workers against the ratification of the North American Free Trade Agreement (NAFTA) in 1992?
    8·2 answers
  • The​ risk-free rate is 3.4​% and you believe that the​ S&P 500's excess return will be 11.9​% over the next year. If you inv
    5·1 answer
  • Sarah, the cofounder of a start-up company that sells sports goods, prepares a mission/purpose statement for the company. In the
    7·1 answer
  • A customer invests 50000. 10 years later, the investment is worth 100000. the customers annual compouned rate of return is?
    13·1 answer
  • The beginning inventory of SoCal Wholesalers was $121,000, and the ending inventory is $116,500. What entries are needed at the
    12·1 answer
  • 3. Management activities include all of the following except:
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!