What does the revenue equivalence theorem state?
What will be an ideal response?
The revenue equivalence theorem states that under certain assumptions all four types of auctions are expected to raise the same revenues.
Economics
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Refer to Scenario 10.3. Suppose that a tax of $5 per unit of output is imposed on red herring producers. The price of red herring will
A) not change. B) increase by less than $5. C) increase by $5. D) increase by more than $5. E) decrease.
Economics
Money is what money does. Explain.
What will be an ideal response?
Economics