How does this provision, which essentially turns $60 of variable costs into a fixed cost for you, discourage a supplier’s competition from stealing business?

    Answer the following questions thoroughly. 1. Research the baseball players’ strike of 1980, which took place in two parts: spring training and later in the season. Analyze this choice by the players in terms of BATNAs. You should know that players are paid uniformly throughout the season when they are not on strike but not during spring training. Also, game attendance is highest late in the season. 2. Create the Value Net for your own business or a business with which you are familiar. Take special care in thinking about complementors; they are often overlooked. 3. A rule in a contract, generally one with a commodity supplier, is the take-or-pay provision. It is usually used with commodity suppliers that have high fixed costs. As an example, you agree to buy 100 units from a supplier at $80 per unit. If you buy less, you still have to pay $60 for each unit not bought. How does this provision, which essentially turns $60 of variable costs into a fixed cost for you, discourage a supplier’s competition from stealing business?

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