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

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