Which of the following is a key difference between auctions and clearinghouses?
A) Auctions are used for low-value products, whereas clearinghouses are used for high-value products.
B) Clearinghouses take title to the goods they sell, whereas auctions do not.
C) Clearinghouses facilitate only B2B sales, whereas auctions facilitate B2B and B2C sales.
D) Auctions support a competitive bidding process, whereas clearinghouses sell at a stated price.

Question

Quizplus · Accepted Answer

The key difference between auctions and clearinghouses is the pricing mechanism. In auctions, buyers compete for goods by placing increasingly higher bids, whereas in clearinghouses, goods are sold at a stated price. This makes option D the correct choice. The other options are not accurate. Auctions can be used for both low and high-value products, clearinghouses do not take title to the goods they sell, and both can facilitate B2B and B2C sales.

Which of the Following Is a Key Difference Between Auctions