(Appendix) The winner in an auction bidding process will
A. get less value than was paid in the bidding.
B. on average pay an amount equal to the product's true value.
C. get more value than was paid in the bidding.
D. win the bid if he takes the average of his best estimate of the starting bid and the items true value.
Answer: A
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If the natural monopoly shown in the figure above is unregulated, then it will charge a price of
A) $2. B) $4. C) $5. D) $6.
The Federal Reserve econometric model estimates that a 1 percent increase in the money supply will
A) increase real GDP by 1 percent after 3 years. B) increase real GDP by 2 percent in 3 years. C) increase real GDP by 3 percent 3 years. D) have no effect on real GDP after 2 years.
If neither firm has a dominant strategy, a Nash equilibrium cannot exist
Indicate whether the statement is true or false
Which of the following would cause an increase in the market supply of mountain bikes?
A) a decrease in the demand for mountain bikes B) an increase in taxes levied on mountain bike manufacturers C) an increase in the cost of components used to assemble mountain bikes D) an increase in the number of firms making mountain bikes