Which of the Following Is True in a Competitive Procurement

question 27

Multiple Choice

Which of the following is true in a competitive procurement?

• A) A lower price increases a supplier's chance of being selected but reduces its potential profit upon winning.
• 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:

Demand Curve

The Demand Curve is a graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers, typically downward sloping.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that suppliers are willing to produce and sell.

Y Axis

The vertical line in a graph or chart that typically represents the dependent variable.

Equilibrium Price

The point where the volume of goods being offered equals the volume of goods being sought in terms of price.