The winner's curse occurs:
A. only in second-price, sealed-bid auctions.
B. only in English auctions.
C. in a common-values auction.
D. in a private-values auction.
Answer: C
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An art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides. The museum is answering the ________ part of one of the two big economic questions
A) "scarcity" B) "what" C) "why" D) "how"
Tom is going to quit his job to pursue his PhD in economics, which will take him 6 years to complete. He currently makes $55,000 per year as a high school teacher
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In game in Scenario 13.8, what is the Nash equilibrium?
A) The strategy pair associated with $1, $10. B) The strategy pair associated with $2, $0. C) The strategy pair associated with $1, -$5000. D) The strategy pair associated with $2, $2. E) There is no Nash equilibrium in pure strategies.
Things that a firm owns that are worth something are classified as
A. net worth. B. assets. C. liabilities. D. deposits.