Asked by Diana Hsiao on Mar 10, 2024



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.If Anna receives $100 from the auction she can infer that

A) ​Both the bidders were high value bidders
B) Both the bidders were low value bidders
C) One of the bidders was high value,while the other was low value
D) ​All of the above

High-value Bidders

Participants in an auction who are willing and able to place significantly large bids on items or assets, reflecting their high valuation.

Low-value Bidders

describes participants in auctions or competitive bidding processes who offer relatively low prices for goods or services, possibly affecting market dynamics and pricing standards.

Receives $100

This phrase typically refers to an individual or entity obtaining a sum of $100, often in a transaction, payment, or monetary gift.

  • Determine the influence of valuation disparities among bidders on auction results.

Verified Answer

Melissa Reynish

Mar 10, 2024

Final Answer :
Explanation :
If Anna receives $100 from the auction, it implies that both bidders were willing to pay up to that amount, indicating they both had a high value for the teacup. In auctions, the final price often reflects the valuation of the second-highest bidder (plus a bid increment), so for the price to reach $100, both bidders must value it at least that much, suggesting they are both high-value bidders.