What is the definition of "Minimum bid" in auction terms?

The term "Minimum bid" refers to the smallest amount that an auctioneer is willing to accept for a starting bid on an item being auctioned. This establishes a baseline entry point for bidders, ensuring that the auction does not start at an unreasonably low figure that may undervalue the item.

In the context of the auction process, setting a minimum opening bid helps to facilitate competitive bidding while protecting the seller’s interests. It ensures that the auction begins at a price that reflects the item's value, encourages participation among bidders, and may stimulate higher bids as the auction progresses.

The other options represent different aspects of the bidding process but do not define what a minimum bid is. For example, the highest bid recorded pertains to the top value submitted during the auction, while the average bid submitted would involve calculating the mean of all bids made, and the final accepted bid refers to the last bid that has been accepted by the auctioneer, finalizing the transaction. None of these capture the foundational concept of the minimum bid at the start of the auction.