QID: #58917

Subject: Economics Status: Verified Solution Available
You run a small bakery that makes about 1,000 muffins per day. You get offered a large contract that needs you to make 3000 to 4000 muffins a day. You know the bank will lend you the money to buy the ingredients and that is not a problem. Should you accept the contract? What things do you need to consider? In the discussion give one or two points of what a company considering this offer must think about in the short run.
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