In a common-value auction
a. Every bidder knows the exact value of the item being auctioned
b. Each bidder only has an estimate of the value of the item
c. The value is different for each bidder
d. All of the above
b
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Household income is spent on all of the following except one. Which is the exception?
a. services b. tax payments c. durable goods d. nondurable goods e. dividends
Unpriced by-products of production or consumption that provide benefits to other consumers or other firms are known as
a. negative externalities b. common pool benefits c. positive externalities d. private benefits e. Coase by-products
Which of the following is (are) true of a monopoly? (i) A monopoly has the ability to set its price. (ii) A monopolists marginal revenue will always increase when it lowers the price of its product. (iii) A monopoly can never experience an economic loss
a. (i) only b. (ii) only c. (i) and (ii) only d. (ii) and (iii) only
During the financial crisis of 2007-2009, the proper policy response was
a. contractionary monetary and fiscal policy. b. contractionary monetary and expansionary fiscal policy. c. expansionary monetary and fiscal policy. d. expansionary monetary and contractionary fiscal policy.