Refer to the scenario above. If each bidder uses his/her dominant strategy, who will get the good being auctioned?
A) Tom
B) Pat
C) Arthur
D) Julie
C
You might also like to view...
Which of the following will lead to an efficient private solution if negative externalities are present in a market?
A) The party having the legal right is taxed. B) The party creating the externality has the legal property right. C) The party suffering from the externality has the legal property right. D) The parties involved negotiate with each other and reach an agreement.
A consumer maximizes satisfaction at the point where his valuation of good X, measured as the amount of good Y he would willingly give up to obtain an additional unit of X, equals:
A) the magnitude of the slope of the indifference curve through that point. B) one over the magnitude of the slope of the indifference curve through that point. C) Px/Py D) Py/Px
The spread between the interest rates on bonds with default risk and default-free bonds is called the
A) risk premium. B) junk margin. C) bond margin. D) default premium.
Recently, the price of gasoline dropped to just under $3.50/gallon. Economic analysts currently are focusing on questions concerning the likely impacts of this price decrease on the demand for gasoline. The branch of economics that deals with these
questions is A) Normative economics. B) Macroeconomics. C) Positive economics. D) Microeconomics.