If the bidders at a second-price auction have true values of 78, ...

[cmoore54]

If the bidders at a second-price auction have true values of 78, 72, 66, and 65, the item will sell for
 a. 78
  b. just under 78
  c. 72
  d. just over 72

Question 2

In the short run, specific taxes on a firm result in:
 a. price increases which may not persist in the long run.
  b. an increase in consumer surplus because the tax permits spending in additional government services.
  c. shortages of the good being taxed.
  d. an increase in producer surplus because of the rise in price.

[tennis14576]

Answer to Question 1

c

Answer to Question 2

a