Some popular reality television programs follow people who buy the contents of abandoned storage lockers at public auctions. In most cases, several storeage lockers are sold in sequence during a particular auction
Occassionally, one of the buyers will purposefully bid much more than the expected value of a particular storage locker in order to intimidate the other bidders. What is a plausible explanation for these excessive bids? A) The buyer is trying to establish a reputation that may affect the outcome of later auctions.
B) The excessive bids may be rational if they occur during the last auction of the day.
C) The bidder is trying to establish a first-mover advantage, but only if they occur during the first auction of the day.
D) The excessive bids represent a form of tacit collusion among the buyers.
A
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Refer to Scenario 1-2. Using marginal analysis terminology, another economic term for the incremental cost of producing the last 300 hats is
A) marginal cost. B) explicit cost. C) operating cost. D) Any of the above terms are correct.
According to the Economic Freedom of the World measure, between 2000 and 2010 the economic freedom of the United States
a. declined and its rank fell from third to tenth during this period. b. increased, and the U.S. became the freest economy in the world during this decade. c. was largely unchanged and the U.S. remained the third freest economy in the world, behind only Hong Kong and Singapore. d. decreased, but the U.S. was still the freest economy in the world in 2010.