Refer to the scenario above. The winner of this auction will earn a surplus of ________ if he/she follows his/her dominant strategy
A) $100
B) $50
C) $400
D) $200
B
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In the market for money, an interest rate below equilibrium results in an excess ________ money and the interest rate will ________
A) demand for; rise B) demand for; fall C) supply of; fall D) supply of; rise
GDP does not measure the economic well-being of a nation because:
a. some things which contribute to well-being have no price tag b. GDP places no value on leisure c. ecological costs are not netted out of GDP d. All of the above are correct.
What impact do tax rebates have?
What will be an ideal response?
The principal in an interest rate swap is:
A. is not borrowed, lent, or exchanged. It just serves as the basis for the calculation of cash flows. B. is usually held by a clearinghouse to guarantee payment. C. always transferred from the originator to the counterparty of the swap. D. usually borrowed from a third party.