The consumer surplus enjoyed by the winner of a first-price auction is equal to the difference between ________. her value for the item being auctioned and the value of the lowest bid her bid and the second-highest bid her maximum willingness to pay for the good and her bid her bid and the market price of the good
The consumer surplus enjoyed by the winner of a first-price auction is equal to the difference between ________. her value for the item being auctioned and the value of the lowest bid her bid and the second-highest bid her maximum willingness to pay for the good and her bid her bid and the market price of the good
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The
- her value for the item being auctioned and the value of the lowest bid
- her bid and the second-highest bid
- her maximum
willingness to pay for the good and her bid - her bid and the market price of the good
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