All of the Following Are Conditions Under Which Competitive Bidding

question 59

Multiple Choice

All of the following are conditions under which competitive bidding is effective except ____.

• A) the buyer has a preferred supplier for the item
• B) volume is high enough
• C) the marketplace is competitive
• D) the specifications or requirements are clear to the seller
• E) adequate time is available for suppliers to evaluate the RFQ

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Definitions:

Economic Efficiency

A state where resources are allocated in a way that maximizes the production of goods and services.

External Cost

Uncompensated costs that individuals or firms impose on others outside of market transactions, often associated with pollution.

Pollution Tax

A financial charge imposed on the emission of pollutants, intended to motivate reductions in harmful environmental discharges.