Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Question
Chapter 18, Problem 1MC
To determine
Bid value.
Expert Solution & Answer
Explanation of Solution
In the second price auction, the optimal strategy of bidding should be equal to the person’s value of the product. Hence, the best bid price is $800. Thus, option ‘b’ is correct.
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Chapter 18 Solutions
Managerial Economics: A Problem Solving Approach
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