Which of the Following Is True in Case of a Competitive

question 33

Multiple Choice

Which of the following is true in case of a competitive procurement?

• A)A lower price increases a supplier's chance of being selected but reduces its potential profit.
• B)A lower price reduces a bidder's chance of winning as well as its potential profit.
• C)A higher price increases a bidder's chance of winning as well as its potential profit.
• D)A lower price reduces a supplier's chance of being selected but increases its potential profit.
• E)A lower price increases a supplier's chance of being selected as well as raises its potential profit.

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Definitions:

APS

Automatic positioning system; however, in an economic context, it often refers to the Average Propensity to Save, indicating the proportion of income that is saved rather than spent.

Saving

The portion of income not spent on immediate consumption but set aside for future use, typically in bank accounts, investments, or other forms of financial savings.

Disposable Income

The spending and saving financial capacity of households after deductions for income taxes.

MPC

Marginal Propensity to Consume - the proportion of any additional income that is spent on consumption rather than being saved.