Refer to the scenario above. If they are the only bidders in the auction and each bidder bids up to his value for the good, the winner will earn a surplus of ________
A) $500
B) $625
C) $125
D) $150
C
You might also like to view...
Which of the following is likely to happen if the reserves held at the Fed by the private banks decrease?
A) Banks will make more loans. B) The M2 measure of money will decrease. C) The nominal interest rate will decrease. D) Labor demand will increase.
The cost of producing one more pizza is the
A) price. B) marginal benefit. C) marginal cost. D) producer surplus.
The largest type of depository institution in the United States is
A) savings-and-loans. B) commercial banks. C) credit unions. D) mutual funds.
A perfectly inelastic demand curve exhibits
A) zero responsiveness to changes in price. B) zero quantity demanded when there is a slight change in price. C) a change in quantity demanded that is proportional to the change in price. D) a change in quantity demanded that is always twenty percent of the change in price.