Refer to the scenario above. The winner of this auction will earn a surplus of ________ if he follows his dominant strategy

A) $100
B) $300
C) $400
D) $200


A

Economics

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________ would be the source of a "real" business cycle

A) Unanticipated changes in monetary policy B) Anticipated changes in monetary policy C) Technology shocks D) all of the above

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Which of the following would contribute to a sustained high rate of economic growth in the long run in an economy?

A) an influx of immigrant labor into an economy without any accompanying technological change B) a shift of workers in the economy from the agricultural sector to the nonagricultural sector C) increases in labor force participation rates as workers who are out of the labor force pursue rising wages D) growth in capital per hour worked accompanied by technological change

Economics

If an industry currently dominated by three large producers whose revenues represent 30%, 30%, and 30% of the market's total revenues, with the remaining two firms each representing 5%, then the two largest firms merged, what would be the new four firm concentration ratio and the new Herfindahl-Hirschman Index for this industry?

a. 95%; 4525 b. 95%; 2,750 c. 100%; 4525 d. 100% 2,750

Economics

Businesses that fail to account for implicit costs, like the strawberry farmer, Hiroshi Fujishige, who failed to consider the enormous opportunity of selling his property to Disneyland, will

A. Make higher-than-normal profits. B. Make more money when they shut down. C. Have to increase revenues in order to stay in business. D. Go out of business immediately.

Economics