9. A dealer decides to sell an antique automobile by means of an English auction with a reservation price of $2,700. There are two bidders. The dealer believes that there are only three possible values, $5,400, $3,600, and $2,700, that each bidder's willingness to pay might take. Each bidder has a probability of 1/3 of having each of these willingness to pay, and the probabilities for each of the two bidders are independent of the other's valuation. Assuming that the two bidders bid rationally and do not collude, the dealer's expected revenue from selling the car is approximately а. $4,500. b. $3,900. с. $3,600. d. $3,300. CE 400

9. A dealer decides to sell an antique automobile by means of an English auction with a reservation price of $2,700. There are two bidders. The dealer believes that there are only three possible values, $5,400, $3,600, and $2,700, that each bidder's willingness to pay might take. Each bidder has a probability of 1/3 of having each of these willingness to pay, and the probabilities for each of the two bidders are independent of the other's valuation. Assuming that the two bidders bid rationally and do not collude, the dealer's expected revenue from selling the car is approximately а. $4,500. b. $3,900. с. $3,600. d. $3,300. CE 400

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

5. OYNAMICS x(xg -8x+4) dt do dt y(3x-y) SET BOTH AMO FIVD THE REUTIONSHIP BETWEEN * X SUCH THKT d- do GRAPH TIESE (w/ THE "ARRavs") - FINO X* t y" 9L MOHS DYMAMICS
QUESTION 19 If one fails to account for implicit costs in decision making, then the cost-benefit rule will be flawed because, O A. the costs will be overstated O B. the costs will be understated C. the benefits will be overstated D. the benefits will be understated.
2. How could the principle of environmental resources such as the atmosphere and of conchisions about optimal depletion apply or not? resources? Kine Exercises 5b intergenerational allocation of resources. Suppose a generation is thirty-five vee of we are concerned with only two generations. Demand and supply functions for oil in the present generation are given by: Demand: Qd = 200– 5P or P = 40– 0.2Qd %3D Supply: Qs = 5P or P = 0.20s %3D (a) Draw a demand and supply graph showing the equilibrium price and quantity consumed in this generation in the absence of any consideration of the future. Now draw a graph showing the marginal net benefits from consumption in this period at all levels of consumption up to the equilibrium level. Express the net benefit (benefit minus cost) algebraically. (b) Suppose that the net benefit function is expected to be the same for the next generation. But there is a discount rate (interest rate) of 4 percent per annum, which for thirty-five years works…
QUESTION 16 After much consideration, you have chosen Salalah over Baku as your Eid Break destination this year. However, Eid Break is still a week away, and you may reverse this decision. Which of the following events would prompt you to reverse this decision? O A. The marginal benefit of going to Salalah increases OB. The marginal cost of going to Baku decreases OC. The marginal cost of going to Salalah decreases OD. The marginal benefit of going to Baku decreases
question 11 please.
Best choice
1. The cost of production is a major determinant of consumer demand. a. True O b. False
pls, solve this ques within 10-15 minutes with clear explanations and also explain why other options are wrong I'll give you multiple upvotes.
By definition: a substitute is a good that: Select one: O a. has same likeness as another good O b. that is not used in place of another good O c. of lower quality than another good O d. of higher quality than another good
Morph rede Reveral Wee SPape Wheef ACTIVITY: 005 Binds Comb Unceeer %3D A. Complete the following table using data below: Toilf Random far herkebear Push Cover Cube FC VC AVE. TC MC OUTPUT Fea Aimiene Rendam 10 10 16 Modiy Iransdon 36 40 Sund NoSoun 公 n 34
An owner of a landscaping business received extra income in the previous month. She is considering eitner buying a new lawnmower or spending the money on an advertisment in order to increase business in the next few months If the business owner chooses to spend the money on an advertising campaign, what is the opportunity cost? O A. more advertising O B. next month's income O C. the lawnmower O D. increased business
Choose the statement or statements that are correct. 1. The value of one more unit of a good or service is its marginal benefit. II. Marginal benefit equals the total amount we spend on a good or service. III. Marginal benefit is the maximum amount willingly paid for another unit of a good or service. O A. I only OB. II only O C. Ill only OD. I and III OE. I, II, and III ww.