The optimal bidding strategy for a second-price auction is
a. To bid your true value
b. To shade your bid well below your true value
c. To shade your bid just a little below your true value
d. To size up your competition to determine how much to shade your bid
a
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The perfectly competitive widget industry is in long-run equilibrium. A profit-maximizing manufacturer receives total revenue of $55,000. He uses his labor, $15,000 worth of wire, and $15,000 worth of steel to make the widgets. The manufacturer
A. is earning an economic profit of $25,000. B. must have an opportunity cost of labor of less than $25,000. C. must have an opportunity cost of labor of exactly $25,000. D. must have an opportunity cost of labor of more than $25,000.
In most developed countries, the class system:
A. is diamond-shaped with the largest group being the middle class. B. is a pyramid with the largest group being the lower class. C. is the same as in underdeveloped countries. D. has been completely eliminated.
The concept based on the assumption that we get bargains on each unit we purchase until the last one is called
A. total utility. B. consumer surplus. C. marginal utility. D. the law of diminishing marginal utility.
The purchasing power of money decreases as the price level increases.
Answer the following statement true (T) or false (F)