Compared to competitive markets,auction prices are often ________ when there are very few bidders.

Question

Quizplus · Accepted Answer

In competitive markets, there are typically many buyers and sellers which means there is more competition and prices tend to be driven down by that competition. However, in an auction where there are very few bidders, there is less competition and the prices may not be bid up as high as they would in a more competitive market. Therefore, auction prices are often lower when there are very few bidders.

Compared to Competitive Markets,auction Prices Are Often ________ When There