Which of the Following Is True of Competitive Proposals

question 21

Multiple Choice

Which of the following is true of competitive proposals?

• A) They are evaluated on their own merits rather than in comparison to other proposals.
• B) They are never used in applications for research funding.
• C) They are used when many different proposals seek access to the same limited resources.
• D) They are always awarded to the less qualified agent.
• E) They are typically used when a company seeks internal suggestions for saving money.

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Definitions:

Tolerances

The permitted variations in measurements or physical characteristics in the manufacturing or production of goods.

Economies of Scale

Economies of scale describe the reduction in per-unit cost that a company benefits from as it scales up production. This cost benefit is due to the fixed costs spreading over a larger number of units.

Economies of Scope

Cost advantages that enterprises obtain by producing a wide range of products, diversifying their output, and sharing production inputs.

Economies of Scope

Cost advantages that enterprises obtain due to the efficient production of a wide range of products rather than specializing in a single product or service.