Asked by Kristian Johnston on Apr 27, 2024

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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.

Lower Price Buyer

An economic actor who prioritizes purchasing goods or services at the lowest available prices, often influencing market dynamics and pricing strategies.

Higher Price Buyer

A buyer willing to pay more than the standard price, usually in exchange for premium service, faster delivery, or exclusive access to a product or service.

Expected Revenue

The amount of money a business anticipates receiving over a certain period, based on sales forecasts and pricing strategies.

  • Learn about the concessions required when undertaking orders from clients at differing pricing tiers.
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AB
Andie BaughmanApr 27, 2024
Final Answer :
C
Explanation :
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.