Consider an auctioneer who is selling an item through an auction. It is known that the 10 risk-neutral bidders have independent private values that are uniformly distributed between $1,000 and $2,000. Based on this information, we can conclude that the expected revenue in this auction will be:
A. $2,000.
B. $1,000.
C. $1,900.
D. There is insufficient information to determine the expected revenue.
Answer: D
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When the government controls the price of a product, causing the market price to be above the free market equilibrium price,
A) all producers gain. B) both producers and consumers gain. C) only consumers gain. D) some, but not all, sellers can find buyers for their goods.
Stocks and bonds are examples of:
a. natural resources. b. financial capital. c. physical capital. d. financial labor. e. internal capital.
Total fixed cost
a. varies with the level of output. b. has a downward-sloping curve. c. has an upward-sloping curve. d. is constant at all levels of output.
Which of the following triggered the U.S. recession of 2001?
A) decline in investment demand B) decline in consumption demand C) increase in budget deficit D) increase in trade deficit