Asked by Kristine Mae Almodiel on May 10, 2024
Verified
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 $70 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
Individuals or entities willing to offer significantly higher prices in auctions, typically due to the perceived value of the item or contract.
Low-value Bidders
Participants in an auction or competitive process who offer significantly lower bids compared to others.
- Recognize the impact of differences in bidder valuations on the results of auctions.
Verified Answer
RS
Raghad Saifuddin
May 16, 2024
Final Answer :
B
Explanation :
If Anna receives $70 from the auction, it means that both the bidders bid the low value of $70. Therefore, the best choice is option B - Both the bidders were low-value bidders. Options A and C are not possible in this scenario.
Learning Objectives
- Recognize the impact of differences in bidder valuations on the results of auctions.
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