John is a seller in an independent private-values auction environment where bidders are risk neutral. Which auction yields John the greatest expected revenue?
A. English
B. Second price
C. First price
D. All of the choices are revenue equivalent.
Answer: D
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Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $3
A) economic surplus is maximized. B) the quantity demanded is economically efficient but the quantity supplied is economically inefficient. C) too many consumers want to buy iced tea. D) the quantity supplied is greater than the economically efficient quantity.
If the price of orange juice rises 10%, and as a result the quantity demanded falls by 8%, the price elasticity of demand for orange juice is
A) -1.25. B) inelastic. C) Both A and B above. D) Neither A nor B above.
If the Y-intercept of a linear function increases while the slope remains unchanged
a. the graph must shift down in a parallel way. b. the graph must rotate to the left about the X intercept. c. the graph must shift up in a parallel. d. the graph remains unchanged.
Which of the following is not capital?
A) a computer in the office of an accountant B) a migrant worker in the fields of California C) a wrench in an auto-repair shop D) a new machine used for producing microchips