Scenario: Consider the following situation. Molly is one among the sixty-one bidders who take part in a first-price auction for vintage furniture. Molly places a value of $850, the highest value, for a vintage dressing table that comes up for auction. Joseph has the second-highest willingness to pay of $750.
-Refer to the scenario above.If Molly wins the auction by using her optimal bidding strategy,she will earn a surplus of ________.
A) $0
B) $50
C) $14
D) $25

Question

Quizplus · Accepted Answer

The Answer of Scenario: Consider the following situation. Molly is one among the sixty-one bidders who take part in a first-price auction for vintage furniture. Molly places a value of $850, the highest value, for a vintage dressing table that comes up for auction. Joseph has the second-highest willingness to pay of $750.
-Refer to the scenario above.If Molly wins the auction by using her optimal bidding strategy,she will earn a surplus of ________.
A) $0
B) $50
C) $14
D) $25

Scenario: Consider the Following Situation