Business, 11.06.2021 21:10 javink18

You are a bidder in an independent private values auction, and you value the object at $4,000. Each bidder perceives that valuations are uniformly distributed between $1,500 and $9,000. Determine your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:

Answers: 2

Show answers

Answers

Answer from: muziqbox594

a. 2 bidders $2,750

b. 10 bidders $3,750

c. 100 bidders $3,975

Explanation:

Calculation to determine what your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:

Using this formula

Optimal bidding = Bidder's own valuation - (Bidder's own valuation - Lowest valuation) ÷ Number of bidders

Let plug in the formula

a) 2 bidders

Optimal bid = $4,000 - [($4,000 - $1,500) ÷ 2]

Optimal bid = $4,000 - ($2,500÷2)

Optimal bid = $4,000 - $1,250

Optimal bid = $2,750

b) 10 bidders

Optimal bid = $4,000 - ($4,000 - $1,500) ÷ 10

Optimal bid = $4,000 - ($2,500÷10)

Optimal bid = $4,000 -$250

Optimal bid =$3,750

c) 100 bidders

Optimal bid = $4,000 - ($4,000 - $1,500) ÷ 100

Optimal bid = $4,000 - ($2,500÷100)

Optimal bid = $4,000-$25

Optimal bid = $3,975

Therefore your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:

a. 2 bidders $2,750

b. 10 bidders $3,750

c. 100 bidders $3,975

Answer from: Quest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Answer from: Quest

these are the four factors that influence enterpreneurship development

1. economic development

2. culture

3.technological development

4. education

Another question on Business

Business, 22.06.2019 10:10

Rats that received electric shocks were unlikely to develop ulcers if the

Answers: 1

Answer

Business, 22.06.2019 12:30

land, a building and equipment are acquired for a lump sum of $ 1,000,000. the market values of the land, building and equipment are $ 300,000, $ 800,000 and $ 300,000, respectively. what is the cost assigned to the equipment? (do not round any intermediary calculations, and round your final answer to the nearest dollar.)

Answers: 1

Answer

Business, 22.06.2019 14:50

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of

Answers: 3

Answer

Business, 22.06.2019 19:30

Problem page a medical equipment industry manufactures x-ray machines. the unit cost c (the cost in dollars to make each x-ray machine) depends on the number of machines made. if x machines are made, then the unit cost is given by the function =cx+−0.3x2126x31,935 . how many machines must be made to minimize the unit cost?

Answers: 3

Answer

You know the right answer?

You are a bidder in an independent private values auction, and you value the object at $4,000. Each...

Questions