CPT Inc. is a local manufacturer of conveyor systems. Last year, CPT sold over $ 2 million worth of conveyor systems that netted the company $ 100,000 in profits. Raw materials and labor are CPT’s biggest expenses. Spending on structural steel alone amounted to over $ 500,000, or 25 percent of total sales. In an effort to reduce costs, CPT now uses an online procurement procedure that is best described as a first- price, sealed- bid auction. The bidders in these auctions utilize the steel for a wide variety of purposes, ranging from art to skyscrapers. This suggests that bidders value the steel independently, although it is perceived that bidder valuations are evenly distributed between $ 8,000 and $ 25,000. You are the purchasing manager at CPT and are bidding on three tons of six- inch hot- rolled channel steel against four other bidders. Your company values the three tons of channel steel at $ 16,000. What is your optimal bid?
Answer to relevant QuestionsSuppose that the total benefit and total cost from a continuous activity are, respectively, given by the following equations: B (Q) = 100 + 36Q – 4Q2 and C (Q) = 80 + 12Q. [MB (Q) = 36 – 8Q and MC (Q) = 12. a. Write out ...You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. The energy- efficient model sells for $ 700 and will save you $ 45 at the end of each of the next ...The demand curve for product X is given by Qdx = 300 - 2Px. a. Find the inverse demand curve. b. How much consumer surplus do consumers receive when Px = $ 45? c. How much consumer surplus do consumers receive when Px = $ ...Afew years ago PeopleSoft announced that its second- quarter net income was down by nearly 70 percent. The company’s CEO attributed the poor performance to an ongoing hostile takeover battle against its rival, Oracle ...Barnacle Industries was awarded a patent over 15 years ago for a unique industrial- strength cleaner that removes barnacles and other particles from the hulls of ships. Thanks to its monopoly position, Barnacle has earned ...
Post your question