Chapter 3

Question 1

is the LEAST FAVORABLE POINT at which one will accept a NEGOTIATED AGREEMENT.

Answer 1

Reservation price

Question 2

is the price at which a seller can make the most profit. In other words, the price point at which the seller’s total PROFIT IS MAXIMIZED.

Answer 2

Optimal price

Question 3

common name for several types of sales where the price is neither set nor arrived at by negotiation, but is DISCOVERED THROUGH THE PROCESS of COMPETITIVE AND OPEN BIDDING.

Answer 3

Auction

Question 4

The two major types of auction are:

Answer 4

Forward auction
Reverse auction

Question 5

auction in which SEVERAL BUYERS bid for ONE SELLER’S GOOD(s)

Answer 5

Forward auction

Question 6

auction in which SEVERAL SELLERS bid for ONE BUYER’S ORDER.

Answer 6

Reverse auction

Question 7

Market mechanism by which buyers make bids and sellers place offers; characterized by the competitive and dynamic nature by which the final price is reached

Answer 7

Auction

Question 8

allows buyers and sellers to be able to adjust pricing strategies and optimize product inventory levels very quickly.

Answer 8

Dynamic pricing

Question 9

Types of auctions:

Answer 9

One buyer, one seller
One seller, many potential buyers
One buyer, many potential sellers
Many sellers, many buyers

Question 10

prices that are determined based on supply and demand relationships at any given time

Answer 10

Dynamic pricing

Question 11

What does One buyer, one seller use?

Answer 11

negotiation
bargaining
bartering