Scenario: Four friends-Tom, Bill, Jeff, and Roger-are participating in an English auction. Tom values the good being auctioned at $500, Bill values it at $210, Jeff values it at $350, and Roger values it at $625.
-Refer to the scenario above.Suppose there are several other bidders in the auction.Roger will win the auction only if ________.
A) all the other bidders bid above $625
B) all the other bidders bid below $625
C) all the other bidders are risk lovers
D) all the bidders are risk averse

Question

Quizplus · Accepted Answer

Roger values the good at $625, so he will not bid higher than that. Thus, he will only win if all the other bidders value the good at less than $625 and bid accordingly. Hence, option B is the best choice.

Scenario: Four Friends-Tom, Bill, Jeff, and Roger-Are Participating in an English