In a sealed-bid, second-price auction, you should bid
A) your estimate of what others value the good at.
B) one dollar more than your estimate of what the second-highest bid will be.
C) your highest value.
D) the common value of the good.
C
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A cheerleader-turned-pop-vocalist is offered a choice by her producer of either a lump sum of $20 million for all future work or a stipend of $1 million per year, payable to her and her heirs forever. She should choose the $1 million
a. no matter what the interest rate is b. if the interest rate is greater than 20 percent c. if the interest rate is less than 20 percent d. if the interest rate is greater than 5 percent e. if the interest rate is less than 5 percent
A monopoly's
a. supply curve is the same as its marginal cost curve b. supply curve is the same as its marginal revenue curve c. marginal cost curve is downward sloping d. demand curve is horizontal e. marginal revenue curve is downward sloping