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An Antique Cabinet Is Being Sold by Means of an English

Question 12

Multiple Choice

An antique cabinet is being sold by means of an English auction.There are four bidders, Arabella, Lana, Hester, and Betsy.These bidders are unacquainted with each other and do not collude.Arabella values the cabinet at $1,000, Lana values it at $500, Hester values it at $1,300, and Betsy values it at $800.If the bidders bid in their rational self-interest, the cabinet will be sold to


A) Hester for slightly more than $1,000.
B) Hester for about $1,300.
C) Arabella for about $1,000.
D) either Hester or Arabella for about $1,000.Which of these two buyers gets it is randomly determined.
E) either Hester or Arabella for about $500.Which of these two buyers gets it is randomly determined.

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