If the bidders at a first-price auction have true values of $78,$72,$66,and $65,the item will sell for
A)Just above $78
B)just over $72
C)$78
D)$72

Question

​If the bidders at a first-price auction have true values of $78,$72,$66,and $65,the item will sell for
A)​Just above $78 
B)just over $72
C)$78
D)​$72

Quizplus · Accepted Answer

In a first-price auction, the highest bidder wins the item and pays the amount they bid. Therefore, the item will sell for the highest bidder's bid. In this case, the highest bidder has a true value of $78, so the item will sell for $78.

​If the Bidders at a First-Price Auction Have True Values

If the Bidders at a First-Price Auction Have True Values