Anna's Antiques expects to get three 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 three bidders show up at the auction and all of them are high-value bidders, what would the winning bid be?
a. Just above 100
b. 100
c. Just above 70
d. 70
QUESTION 2In a competitive industry
a. the industry has high barriers to entry
b. the industry has high barriers to exit
c. the industry has high barriers to entry and exit
d. the industry has no barriers to entry or exit
QUESTION 3Anna's Antiques expects to get three 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 three bidders show up at the auction and two of the bidders are low value, what would the winning price be?
a. Just above 100
b. 100
c. Just above 70
d. 70
QUESTION 4In a competitive industry
a. firms have no cost advantages
b. some firms have cost advantages, while others do not
c. all the firms have highly differentiated products
d. Consumers have strong preferences across brands
QUESTION 5Anna's Antiques expects to get three 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 three bidders show up at the auction, and two of the bidders are high-value, what would the winning price be?
a. Just above 100
b. 100
c. Just above 70
d. 70
QUESTION 6In a competitive industry
a. firms produce a product or service with very close substitutes
b. the firms products have a very elastic demand
c. the firms have many rivals
d. all of the above
QUESTION 7Anna'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 customers, the expected value of this auction is
a. 70
b. 78
c. 85
d. 100
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