Which of the following is true in a competitive procurement?
A) A lower price increases a supplier's chance of being selected but reduces its potential profit upon winning.
B) A lower price reduces a bidder's chance of winning as well as its potential profit.
C) A higher price increases a bidder's chance of winning as well as its potential profit.
D) A lower price reduces a supplier's chance of being selected but increases its potential profit.
E) A lower price increases a supplier's chance of being selected as well as raises its potential profit.

Question

Quizplus · Accepted Answer

In a competitive procurement, the selection of a supplier is usually based on a combination of factors including price, quality, and delivery time. A lower price may increase a supplier's chance of being selected, but it also reduces its potential profit upon winning the bid. However, a higher price does not necessarily increase a bidder's chance of winning, as other factors such as quality and delivery time may outweigh the price factor.

Which of the Following Is True in a Competitive Procurement