Final answer:
The incorrect step in a live auction process is that the lowest-cost supplier is automatically selected, as various factors can influence the choice. Competitive bidding and being well-informed are crucial in auctions, and prices are not solely determined by cost alone.
Step-by-step explanation:
The statement that does not represent a key step in a live auction to select a seller/supplier is E. Lowest-cost Seller/Supplier is selected. Live auctions focus on competitive bidding where suppliers bid against one another, which inherently means the selection is not strictly based on the lowest cost but can also consider other factors like quality and service offered. It's important for both buyers and sellers to be well-informed about market conditions and have the freedom to enter and leave the market. The competitive environment ensures that prices are negotiated until a satisfactory level is reached for both parties involved.
Buyers and sellers act independently and compete with each other during live auctions, and both must be well informed about the products and conditions in the market to make educated decisions. Furthermore, the fact that many sellers and buyers participate creates a dynamic market where supply and demand play significant roles in determining prices.
In the presence of imperfect information, it might be difficult for a buyer and a seller to agree on a price, as both parties might not have a complete understanding of the market or product value. Questions such as how prices are determined and the role of equilibrium in economics are essential to understand the auction process in the context of market dynamics.