Asked by Jolie Patten on Sep 24, 2024
Verified
If the bidders at an oral auction have true values of $8,$7,$6,and $5,the item will sell for
A) $8
B) $7
C) just over $7
D) just under $7
Oral Auction
An event where items or services are sold to individuals who make the highest spoken offer.
True Values
Refers to the actual, inherent value or worth of an item, property, or financial instrument, as opposed to its market price or cost.
Just over
Slightly more than a specified amount, number, or degree.
- Determine the likely selling price in auction settings by assessing the behavior of bidders and the auction format.
Verified Answer
RS
Ricky Spontaneousabout 22 hours ago
Final Answer :
C
Explanation :
The highest bidder will win, but they will only pay the price of the second-highest bidder. In this case, the highest bidder has a true value of $8 and the second-highest bidder has a true value of $7. Therefore, the item will sell for just over $7, which is the price of the second-highest bidder.
Learning Objectives
- Determine the likely selling price in auction settings by assessing the behavior of bidders and the auction format.