If the bidders at a first-price auction have true values of $78, $72, $66, and $65, the item will sell for
a. Just above $78
b. just over $72
c. $78
d. $72
c
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Profits from speculation arise because of
A) the spread between the bid and ask prices on bonds. B) the illiquidity of markets for derivative instruments. C) the high information costs in markets for derivative instruments. D) disagreements among traders about future prices of a commodity or financial instrument.
The relationship between a change in the price of a complementary good and demand for another complementary good is
A) positive. B) negative. C) inconclusive. D) zero.
The higher the expected inflation, _____
a. the higher the nominal rate of interest that lenders require and that borrowers are willing to pay b. the lower the nominal rate of interest that lenders require and that borrowers are willing to pay c. the higher the nominal rate of interest that lenders require and the lower the nominal rate of interest that borrowers are willing to pay d. the higher the real interest rate that lenders require e. the higher the real interest rate that borrowers are willing to pay
What was the first important law regulating monopoly that prohibited "restraint of trade"?
a. Sherman Act b. Robinson-Patman Act c. Cellar-Kefauver Act d. Clayton Act