This factor contributes to the winner's curse
a. your estimate of the value of the object was not the most optimistic
b. your bid was the highest
c. there were not many other bidders you had to beat out
d. you did not shade your bid enough
b
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The equilibrium exchange rate is 0.70 euros per dollar. At this exchange rate, the quantity demanded equals the quantity supplied and is $1.3 trillion a day. If the exchange rate is now 0.60 euros per dollar, then
A) there is a shortage of dollars and the exchange rate rises. B) there is a shortage of dollars and the exchange rate falls. C) there is a surplus of dollars and the exchange rate rises. D) there is a surplus of dollars and the exchange rate falls. E) there is no change.
Why do markets tend to underproduce public goods?
How would a decrease in consumer income affect the market for new automobiles, a normal good?
A. Demand would decrease, leading to an increase in price and a reduction in quantity sold. B. Demand would decrease, leading to a reduction in price and a reduction in quantity sold. C. Demand would increase, leading to an increase in price and an increase in quantity sold. D. Demand would increase, leading to a reduction in price and an increase in quantity sold.
Due to a firm generating external costs, the government decides to ________ the firm. When this happens, the firm will produce ________ units of output than before the tax was imposed in order to continue maximizing profits.
A. tax; more B. tax; fewer C. subsidize; fewer D. subsidize; more