Three firms are participating in a sealed-bid auction. Firm X assesses that each rival's bid will lie between $500 and $600, with all values equally likely. What bid should Firm X submit if it seeks to gain a 64% probability of winning the auction?

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The Answer of Three firms are participating in a sealed-bid auction. Firm X assesses that each rival's bid will lie between $500 and $600, with all values equally likely. What bid should Firm X submit if it seeks to gain a 64% probability of winning the auction?

Three Firms Are Participating in a Sealed-Bid Auction