Your company made a large quantity of bean bags that have not sold well in retail stores. How might you best use an auction to sell the excess merchandise?

 
 
 
 
 
 

Dutch auctions, also known as descending price auctions, are particularly effective at quickly selling excess merchandise.

Other Questions Of This Category

You're organizing a popular and well-attended charity auction. A local artist has donated a sculpture that you believe will be popular with some bidders but may not be universally valued. Attendees…

Your daughter's school is hosting an auction to raise money for classroom resources. They're soliciting donations from local businesses. The parents who will attend range in income from low to high,…

The long-time supplier of vehicles for a taxi company is closing down. The taxi company is using a reverse auction house to run an auction for a contract with a new supplier. How might participation…

You've been hired to improve pricing strategies for a new and expensive children's shoe line. Your predecessor targeted primarily customers with high valuations for the clothing. How might you…

Review: You've been hired to improve pricing strategies for a new and expensive children's shoe line. Your predecessor targeted primarily customers with high valuations for the clothing. How might you…

Your daughter's school is hosting an auction to raise money for classroom resources. They're soliciting donations from local businesses. Items will be on display and bids will be accepted throughout a…

Upon the retirement of the founder, a venerable men's clothing store is closing and will auction all of its inventory, display cases, and signage. As someone with significant experience buying at…

On your first day on the job at a reverse auction factory, you've been asked to review auctions that are currently in the works or have recently closed. Which of the following scenarios would raise a…

A long-time supplier of vehicles for a taxi company is being asked to participate in a reverse auction. How might participation in this type of auction most likely benefit the taxi company?

A friend is considering an English auction to sell an antique car. How might you caution her about risks to sellers?

A small business owner is trying to determine a selling price for a new product in a line of vintage-inspired wooden toys. She's currently thinking of creating the product in-house for a cost of $18…

Review: Your company is about to release new models of washers and dryers with significantly enhanced features. How might they use an auction pricing mechanism to sell as many of the current models as…

Your company is about to release new models of washers and dryers with significantly enhanced features. How might they use an auction pricing mechanism to sell as many of the current models as…

Demand Schedule Price Quantity Sold Marginal Cost $200 100 $100 $175 250 $100 $150 400 $100 $125 600 $100 Using the demand schedule above, which price-quantity combination is most profitable for the…

The leading brand of scissors decides to take advantage of back to school sales by increasing the manufacturing price they ask from retailers. How might a large chain of office supply retail stores…