How information affect your desire to sign two-year contract


As a manager of the Ponchartrain Yard Art Corporation, you have negotiated with several vendors and are ready to sign a two-year contract with Toy Yachts R Us. Under the contract, they will ship to you 5,000 plastic bathtub yachts per month at a price of $4,000 per 1000. You are reading an industry blog and discover an article that indicates a researcher has developed a new molding process for plastic that uses ½ the energy of the current process. Bathtub yachts are produced using the plastic molding process described in the article, and the new process will be widely available in 6 months. How specifically does this information affect your desire to sign a two-year contract with Toy Yachts R Us?

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Microeconomics: How information affect your desire to sign two-year contract
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