In common value auctions
a. Every bidder know the value of the object being sold
b. Each bidder makes their own estimate of the value of the good
c. All bidders know the estimates of the others
d. The true value of the item differs across bidders
b
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Last year, the Pottery Palace supplied 8,000 ceramic pots at $40 each. This year, the company supplied the same quantity of ceramic pots at $55 each. Based on this evidence, The Pottery Palace has experienced
A) an increase in the quantity supplied. B) a decrease in supply. C) a decrease in the quantity supplied. D) an increase in supply.
Which of the following describes a difference between allocative efficiency and productive efficiency in a perfectly competitive market?
A) Allocative efficiency is achieved only in the short run. Productive efficiency is achieved only in the long run. B) Allocative efficiency is achieved only in the long run. Productive efficiency is achieved in the short run and the long run. C) Allocative efficiency is achieved in the short run and the long run. Productive efficiency is achieved only in the long run. D) Allocative efficiency is achieved only in the long run. Productive efficiency is achieved only in the short run.