Fixed price

Elasticity are products that have a general fixed price and consumers are not willing to pay anymore than a specific price for that product. This is why when you look at the graph for elasticity the graph shows a horizontal line because if there is a decrease in the demand for a product and an increase in price the line becomes flatter on the graph. There are many elastic products that I buy. For example, gummy bears. I was recently traveling from Florida and I make sure to buy a bag of gummy bears

The fixed-price-incentive fee contract has ceiling price, which is expected to cover all potential risk. After the allocated budget for the project is solidified then the profit sharing formula is put into place. This profit sharing formula will help contractors to focus on controlling cost and meeting project objectives in reasonable time line. An example of fixed-price-incentive fee contract would be building a private Catholic school with required performance requirements. The contractors will

for the seller to use a fixed price contract. I probably would try to approach the customer with my problems in hopes of relief. Also, it would only be fair to the customer to be informed, since it’s not a fixed-price contract and additional work would require additional fees to be paid. 4. If you were the customer of this cost-plus program, what would your response be for additional funds for the bathtub period, assuming cost overrun? Since this is not a fixed-price contract, it’s quite common

52.232-5 Payments under Fixed-Price Construction Contracts. The government should pay the contractor the exact contract price as specified in the contract. The government should also pay the contractor monthly precisely as specified in contract, or, if not monthly, according to details of contract as along as the work meets the details of quality that have been established by the Contracting Officer and are delineated in the contract. The Contractor's requests for progress payment needs to

In FP/EPA contracts, there are some different clauses for adjusting prices based on specified contingencies. These clauses may be upward adjustments, downward adjustments, or both. Firm Fixed Price Contracts (FFP), it is appropriate for most commercial transactions, example: Software package that can be bought for $1,500 regardless of the seller’s cost. Time-and-Material Category:

first case I’m going discuss in which cardinal change was used for the basis of a law suit. Air-A-Plane Corporation sign a contract with the Army Chemical Corps to make over 1100 smoke generators which were designated to be M3A1. The total fixed-price contract price was $607,101.04. The major issue that occur with the agreement was the large number of changes made by the Government after the contract was awarded. Yes, the contain the clause governing changes that allowed Army Chemical Corps to change

they have lost a lot of their business. Consumers are not going to want to buy vehicles from this company any more because of how much money it would cost them to get their car fixed. This dispute has hurt a lot of people in the process. For an example, it is hurting the consumers because they have to get their vehicle fixed, the company itself because they are under lawsuits and potential fines. According to BSIC “The serious implications for the firm are expected to not only include costs arising

Use of Price Discrimination in Ticket Sales for Special Events” Master of Business Administration Program “International Finance and Banking” Full time study 1MS group students Aleksandrs Rogovs Margarita Ozola Alina Aleksandrova Anna Korcagina Anita Nenna Nebo Riga 2012 Table of contents Table of contents 2 Introduction 3 1. Positive and negative consequences for buyers and sellers of the special event tickets in case the fixed price approach

The Fixed-Price Contracts is a type of the contract regularly used by the Federal Government for the procurement of various supplies. This type of contract provides prices for a firm, which is often adjustable depending on the issues specified under the contract. According to Engelbeck (2002) the Fixed Price Contract provides for various acquisitions as described below: a) Price determination: In this case, the prospective firm provides a fixed price at the initial stage for determination or adjustment

1. Explain what are royalty rate contracts and fixed-fee contracts. What is the main difference between them? Royalties are disbursements produced by an organization or a licensee to another organization or licensor in exchange for the right to use intellectual property or physical assets owned by the licensor. Royalty agreements are divided into two types of agreements. A Fixed price-per-unit agreement compensates the licensor a fixed price for every product or service sold by the licensee. Royalties