Two purposes of a type of ________ auctions are liquidation and market efficiency.

Question

Quizplus · Accepted Answer

The type of auction being referred to is a "one seller, many potential buyers" auction, also known as a "reverse auction." In a reverse auction, the seller sets a starting price and then potential buyers bid against each other to purchase the item or service at the lowest price possible. This type of auction can be used for liquidation purposes, as the seller can quickly sell off excess inventory, and it can also lead to market efficiency as buyers compete to purchase the item at the lowest possible price.

Two Purposes of a Type of ________ Auctions Are Liquidation