Why Would a Buyer Consider Utilizing a Retail Exchange If

question 83

Multiple Choice

Why would a buyer consider utilizing a retail exchange if he is already a successful buyer?

• A) Exchanges can increase his efficiency by saving time and money
• B) Vendors are more likely to offer lower prices if a buyer uses the Internet
• C) Exchanges are able to bring better merchandise to the negotiating table
• D) The traditional trade show is obsolete, leaving him no option
• E) Vendors are no longer visiting the buyer's office

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Definitions:

Externality

An outcome from economic actions affecting external third parties not related to the activity, which could be either advantageous or detrimental.

Market

A system or an area where buyers and sellers interact to trade goods, services, or financial instruments.

Positive Externality

A benefit gained by a third party not directly involved in a transaction or activity, where the social or economic gain is not reflected in the market price.

Social Planner

A theoretical decision-maker in economics who aims to achieve optimal outcomes for society by considering the allocation of resources and distribution of goods and services.