Sometimes, a bidder on a work contract may bid lower than what would maximize his/her profit from the contract and the reason for that is to create goodwill (to increase expected future business from the buyer).
PLEASE ANSWER THE FOLLOWING QUESTIONS BELOW THOROUGHLY…
How would you value the goodwill that is obtained in this way?
Think about an example that pertains to you. If there is expected goodwill would you be prepared to bid lower to get a contract? Explain your reasons.
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