Refer to the table below. Recall that the bidders only know their own private value of the item and they do not know the other participants' private values. Further, assume each participant will submit bids using their optimal strategy. If the participants are bidding in a Dutch auction, Bidder ________ wins the auction and pays ________.
The table above lists the independent private values of five participants in an auction. Each of the bidders only knows their own value and does not know the private values of the other participants.
A) #3; a value less than $10 million and greater than $9.5 million
B) #5; a value less than $10 million and greater than $9.5 million
C) #5; 9.5 million
D) #3; $10 million
A) #3; a value less than $10 million and greater than $9.5 million
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In the one-input model, a decrease in output price will always cause labor demand to shift in.
Answer the following statement true (T) or false (F)
Net public debt is the
A) difference between tax revenues and government expenditures each year. B) sum of accumulated government deficits and surpluses held by individuals and businesses and foreign institutions. C) sum of accumulated government deficits and surpluses held by U.S. government agencies. D) sum of accumulated government deficits and surpluses held by large money center banks.
Which of the following describes how import quotas on sugar generally affect consumer surplus as shown in Exhibit 2?
a. eliminated
b. unchanged
c. decreased
d. increased
Refer to the information provided in Figure 5.2 below to answer the question(s) that follow.
?Figure 5.2Refer to Figure 5.2. At Point C the price elasticity of demand is -1. Along line segment AB of the demand curve, the demand is
A. inelastic. B. elastic. C. unit elastic. D. either elastic or inelastic, depending on whether price increases or decreases.