In an independent private values sealed-bid second-price auction, if a participant bids more than their valuation this ________ an inferior strategy because the high bid ________.
A) is; cannot affect the amount paid or raise the amount paid
B) is; can only lower the amount paid
C) is not; can only lower the amount paid
D) is not; cannot affect the amount paid or raise the amount paid
A) is; cannot affect the amount paid or raise the amount paid
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If there is a sole producer of a good, and he faces no threat of competition, it is likely that:
A. government intervention will have no impact on the market. B. government intervention will raise prices to consumers. C. government intervention will increase total surplus. D. government intervention will make things better for buyers and sellers.
An action taken by one company to buy a controlling interest in the coming stock of another company
What will be an ideal response?
The correct chain of causation illustrating the changes caused by monetary policy is
A. money, interest rates, C + I + G + (X ? IM), I. B. money, interest rates, I, C + I + G + (X ? IM). C. C + I + G + (X ? IM), I, interest rates, money. D. I, C + I + G + (X ? IM), money, interest rates.
Life insurance companies often give applicants a physical examination to prevent
A) the person from dying before obtaining the policy. B) signaling. C) adverse selection. D) profit maximization.