Competitive bidding is most effective when there are multiple suppliers in the marketplace.

Question

Quizplus · Accepted Answer

Competitive bidding is a process in which suppliers compete against each other to win a contract by submitting their bids. This process is most effective when there are multiple suppliers in the marketplace, as it leads to a more competitive environment, driving down prices and increasing quality. With fewer suppliers, there is less competition and less incentive for suppliers to offer their best prices and quality.

Competitive Bidding Is Most Effective When There Are Multiple Suppliers