Anna's Antiques expects to get three bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If three bidders show up at the auction and all of them are low-value bidders, what would the winning bid be?
a. Just above $100
b. $100
c. Just above $70
d. $70
d
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The opportunity cost of working is the
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