Bundle: Managerial Economics, Loose-leaf Version, 4th + Aplia, 1 term Printed Access Card for Traditional Economics
Bundle: Managerial Economics, Loose-leaf Version, 4th + Aplia, 1 term Printed Access Card for Traditional Economics
4th Edition
ISBN: 9781337551564
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
Question
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Chapter 18, Problem 1MC
To determine

Bid value.

Expert Solution & Answer
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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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