If the bidders at an oral auction have true values of $8,$7,$6,and $5,the item will sell for
A)$8
B)$7
C)just over $7
D)just under $7

Question

​If the bidders at an oral auction have true values of $8,$7,$6,and $5,the item will sell for
A)​$8
B)$7
C)just over $7
D)​just under $7

Quizplus · Accepted Answer

The highest bidder will win, but they will only pay the price of the second-highest bidder. In this case, the highest bidder has a true value of $8 and the second-highest bidder has a true value of $7. Therefore, the item will sell for just over $7, which is the price of the second-highest bidder.

​If the Bidders at an Oral Auction Have True Values

If the Bidders at an Oral Auction Have True Values