Refer to the table below. Recall that the bidders only know their own private value of the item and they do not know the other participants' private values. Further, assume each participant will submit bids using their optimal strategy. If the participants are bidding in a sealed-bid second-price auction, Bidder ________ wins the auction and pays ________.
The table above lists the independent private values of five participants in an auction. Each of the bidders only knows their own value and does not know the private values of the other participants.
A) #3; $9.5 million
B) #3; $10 million
C) #3; $9 million
D) #5; $9.5 million
A) #3; $9.5 million
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If the profit-maximizing quantity of production for a competitive firm occurs at a point where the firm's average total cost of production is falling as production increases, then the firm
a. will be earning positive economic profit at the profit-maximizing quantity. b. will have economic profit less than zero at the profit-maximizing quantity. c. will have zero economic profit at the profit-maximizing quantity. d. should increase the quantity of production to increase profit.
The group that benefited most from the bailout of General Motors and Chrysler was nonunion workers
Indicate whether the statement is true or false
Which of the following provides a way for millions of producers and consumers to allocate scarce resources?
a. government agency b. market economy c. trade organization d. price controls
If a firm has an incentive to increase supply now and decrease supply in the future, then the firm expects that the
A) demand for the product will be lower in the future than it is today. B) price of its product will be higher in the future than it is today. C) price of its product will be lower in the future than it is today. D) price of inputs will be lower in the future than they are today.