Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. What combinations of customers can Anna expect?
a. High value, high value
b. High value, low value
c. Low value, low value
d. All of the above
d
Economics
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What are rational expectations, and how might rational expectations make monetary policy ineffective?
What will be an ideal response?
Economics
Assume you have four tickets to a U2 concert. You decide to sell each of them separately on an auction site such as eBay. Your auctions represent
A) price differentiation. B) perfect price discrimination amongst those who bid for your tickets. C) perfect price discrimination amongst all people who buy tickets for the concert. D) an illegal act, subject to state and federal prosecution.
Economics