Question

In industries where there is a high degree of competition among suppliers, reverse auctions can be an efficient way to conduct and manage the price bidding that would naturally occur in that market.True / False.

Answer 1

True

Explanation:

A reverse auction is a modern way of selling in a highly competitive business environment, whereby there is a switch in role between the seller and buyer in a traditional auction. in this type of auction there are several seller competing to sell to few buyers. The sellers bid for buyers by offering increasingly low prices for buyers and sometimes underbid each other because of the stiff competition.