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 holds an auction between the two bidders,and both the bidders have low values,she would earn ___ from the auction.
A)Just above $100
B)$100
C)Just above $70
D)$70

Question

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 holds an auction between the two bidders,and both the bidders have low values,she would earn ___ from the auction.
A)​Just above $100
B)$100
C)Just above $70
D)​$70

Quizplus · Accepted Answer

If both bidders have low values of $70, the highest bid they would be willing to make is $70, resulting in Anna earning $70 from the auction.

Anna's Antiques Expects to Get Two Bidders for the Unique