1. One concern you have is that AutoCorp might try to lower the effective purchase price of...
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1. One concern you have is that AutoCorp might try to lower the effective purchase price of the seats after the plant is built (by reneging on the contract or demanding higher-quality seats for the same price). Once the plant is built, how much can the purchase price fall before Amalgamated Fabric liquidates the plant?
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Related Book For 
Managerial Economics And Organizational Architecture
ISBN: 9781260571219
7th International Edition
Authors: Clifford W. Smith, Jerold Zimmerman, James Brickley
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