Asked by D3'Na3. G00fy on Sep 24, 2024

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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

High-value

Denoting items or activities that are of significant worth, importance, or benefit.

Low-value

Refers to products, services, or attributes perceived as offering minimal benefit or worth in comparison to their cost or significance.

Combinations

The act of combining or joining two or more elements together to form a whole.

  • Identify the effects of bidder valuation discrepancies on auction outcomes.
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Verified Answer

AH
Amqber Herrera1 day ago
Final Answer :
D
Explanation :
Given that each bidder can have either a high value or a low value for the teacup with equal probability, Anna can expect all combinations of customer values: two high-value customers, one high-value and one low-value customer, and two low-value customers.