Author Question: The winner in a first-price sealed-bid auction pays an amount equal to ________. A) his bid B) ... (Read 48 times)

genevieve1028 · **on:** Jun 29, 2018

The winner in a first-price sealed-bid auction pays an amount equal to ________.

A) his bid
B) the second-highest bid
C) half of his bid
D) the lowest bid

Question 2

Which of the following is true when a Nash equilibrium is reached in a duopoly with homogeneous products?

A) Both the firms earn positive economic profits.
B) Each firm charges a price equal to its average fixed cost.
C) Both the firms earn zero economic profits.
D) Both firms incur huge losses.