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Three Firms: Firm X,Y,and Z Respectively,are Participating in a Competitive

Question 8

Multiple Choice

Three firms: Firm X,Y,and Z respectively,are participating in a competitive bidding process.Firm X somehow assesses that its rivals' bids will lie somewhere around $500-$600.What can be Firm X's optimal bid to fetch him 81% probability of winning the auction?


A) $550
B) $600
C) $590
D) $575
E) $581

Correct Answer:

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