A Dealer Decides to Sell an Oil Painting by Means

A dealer decides to sell an oil painting by means of an English auction with a reservation price of slightly below $85,000.If she fails to get a bid as high as her reservation price, she will burn the painting.There are two bidders.The dealer believes that each bidder's willingness to pay will take one of the three following values: $100,000, $85,000, and $25,000.The dealer believes that each bidder has a probability of 1/3 of having each of these three values.The probability distribution of each buyer's value is independent of that of the other's.Assuming that the two bidders bid rationally and do not collude, the dealer's expected revenue from selling the painting is slightly less than

A) $79,000
B) $92,500.
C) $85,000.
D) $70,000.
E) $70,000