In a second-price auction, the winner pays
A) the second-to-last bid it made.
B) the average of the top two bids.
C) the amount bid by the runner-up.
D) None of the above.
C
Economics
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If 11 workers can produce a total of 54 units of a product and a 12th worker has a marginal product of 6 units, then the average product of 12 workers is
A) 60 units. B) 54 units. C) 48 units. D) 5 units.
Economics
If government forced a firm to charge a price equal to marginal cost in a situation where there are scale economies,
a. new firms would enter the industry. b. the firm would be forced to go bankrupt. c. positive economic profit would grow even larger. d. marginal cost would exceed average cost.
Economics