Suppose the U.S. government is auctioning the rights to mine for gold in a government-owned region on the West coast. Gold has been found in areas close to the region to be auctioned and gold has a fixed market price. The value of the rights to mine for gold in this region is an example of ________.
A) a common value
B) an independent private value
C) a correlated value
D) a public value
A) a common value
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Suppose the table below describes the relationship between price and quantity demanded for a monopolist.QuantityPrice1$102$93$84$75$66$57$48$3 If the marginal cost of producing each unit of output is $5, the at the monopolist's profit-maximizing level of output, the monopolist produces ________ units of output than is socially optimal.
A. 3 more B. 2 fewer C. 1 more D. 3 fewer
If the real interest rate is greater than the nominal interest rate in an economy:
A) inflation must be negative in the economy. B) inflation must be positive in the economy. C) inflation must be zero in the economy. D) the nominal interest rate must be equal to zero.
What is the role of profits in the neoclassical growth theory versus the new growth theory?
What will be an ideal response?
The belief that if you paid more for something it must be more valuable to you is known as:
A. projection bias. B. the sunk cost fallacy. C. the hot-hand fallacy. D. narrow framing.