If the bidders at an oral auction have true values of $78, $72, $66, and $65, the item will sell for
a. $78
b. just under $78
c. $72
d. just over $72
d
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Suppose the Fed buys $1 billion worth of bonds and the required reserve ratio is 5%. In theoretical limit, the money supply could
A) decrease by $5 billion. B) increase by $5 billion. C) increase by $20 billion. D) decrease by $20 billion.
If the demand for a product increases and the supply of the product does not change, equilibrium price and equilibrium quantity will both increase
Indicate whether the statement is true or false
A decline in Tobin's q can be caused by ________
A) a rise in the market value of a firm B) an increase in stock prices C) a decline in stock prices D) a decline in the replacement cost of capital
When a market is efficient:
A. there is no exchange that can make anyone better off without someone becoming worse off. B. a central planner must be involved. C. total surplus is zero. D. an increase in price will reduce the deadweight loss.