Author Question: The higher the bid in a first-price sealed-bid auction, the ________ the chances of winning and the ... (Read 84 times)

a0266361136 · **on:** Jun 29, 2018

The higher the bid in a first-price sealed-bid auction, the ________ the chances of winning and the ________ the surplus earned.

A) higher; higher
B) higher; lower
C) lower; higher
D) lower; lower

Question 2

If tuition at a college is 30,000 and the external benefit of graduating from this college is 10,000, then

i. in the absence of any government intervention, the number of students graduating is less than the efficient number.
ii. the government could increase the number of graduates by giving the college a 10,000 subsidy per student.
iii. the government could increase the number of graduates by giving the students 10,000 vouchers.
A) i only
B) i and ii
C) i and iii
D) ii and iii
E) i, ii, and iii