O a Ob Oc Grandchild 1 receives $112,000 Grandchild 2 receives house and ring and pays $230,000 Grandchild 3 receives the car and receives $74,000 Grandchild 1 receives $126,666.67 Grandchild 2 receives house and receives 215,333.33 Grandchild 3 receives the car and receives $74,000 Grandchild 1 receives the ring and receives $120,000 Grandchild 2 receives house and pays 222,000 Grandchild 3 receives the car and receives $82,000 Grandchild 1 receives $126 666.67

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A grandmother leaves all of her assets to a charity except three items. She leaves her house, a car, and a diamond ring to her 3 grandchildren.
Divide up the assets using the Sealed Bids method. Each grandchild honestly and independently places the following bids in thousands of
dollars. How much does each grandchild receive in the final settlement?
Grandchild 1 Grandchild 2
Grandchild 3
House
Car
Ring
O a
O b
Oc
Od
160
3
171
6
4
Grandchild 1 receives $112,000
Grandchild 2 receives house and ring and pays $230,000
Grandchild 3 receives the car and receives $74,000
Grandchild 1 receives $126,666.67
Grandchild 2 receives house and receives 215,333.33
Grandchild 3 receives the car and receives $74,000
Grandchild 1 receives the ring and receives $120,000
Grandchild 2 receives house and pays 222,000
Grandchild 3 receives the car and receives $82,000
Grandchild 1 receives $126,666.67
Grandchild 2 receives house and ring and pays $215,333.33
Grandchild 3 receives the car and receives $88,666.67
Transcribed Image Text:A grandmother leaves all of her assets to a charity except three items. She leaves her house, a car, and a diamond ring to her 3 grandchildren. Divide up the assets using the Sealed Bids method. Each grandchild honestly and independently places the following bids in thousands of dollars. How much does each grandchild receive in the final settlement? Grandchild 1 Grandchild 2 Grandchild 3 House Car Ring O a O b Oc Od 160 3 171 6 4 Grandchild 1 receives $112,000 Grandchild 2 receives house and ring and pays $230,000 Grandchild 3 receives the car and receives $74,000 Grandchild 1 receives $126,666.67 Grandchild 2 receives house and receives 215,333.33 Grandchild 3 receives the car and receives $74,000 Grandchild 1 receives the ring and receives $120,000 Grandchild 2 receives house and pays 222,000 Grandchild 3 receives the car and receives $82,000 Grandchild 1 receives $126,666.67 Grandchild 2 receives house and ring and pays $215,333.33 Grandchild 3 receives the car and receives $88,666.67
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