An order from a lower price buyer
A)should always be accepted rather than waiting for potential revenue from a higher price buyer.
B)should only be accepted if the expected revenue from a higher price buyer is higher than the current revenue from the lower price buyer.
C)should be accepted if the expected revenue from a higher price buyer is lower than the current revenue from the lower price buyer.
D)should not be accepted if the expected revenue from a higher price buyer is lower than the current revenue from the lower price buyer.

Question

Quizplus · Accepted Answer

Accepting an order from a lower price buyer is advisable if the expected revenue from waiting for a higher price buyer is lower than the immediate revenue from the lower price buyer. This ensures that the seller maximizes their current revenue rather than risking a potential future gain that is not guaranteed.

An Order from a Lower Price Buyer