The Table Above Lists the Independent Private Values of Five

question 5

Multiple Choice

The table above lists the independent private values of five participants in an auction. Each of the bidders only knows their o value and does not know the private values of the other participants.
-Refer to the table above. Recall that the bidders only know their own private value of the item and they do not know the other participants' private values. Further, assume each participant will submit bids using their optimal strategy. If the participants are bidding in a Dutch auction, Bidder _______wins the auction and pays_______ .

• A)#5; 9.5 million
• B)#3; a value less than $10 million and greater than $9.5 million
• C)#5; a value less than $10 million and greater than $9.5 million
• D)#3; $10 million

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Definitions:

Transfer of Completed Goods

The movement of goods that have been finished in the manufacturing process from the production area to inventory or directly to sales.

Work in Process

Inventory consisting of goods that are in the process of being produced but are not yet finished.

Finished Goods

Finished goods are products that have completed the manufacturing process and are ready to be sold to customers.

Overhead

Overhead refers to ongoing business expenses that are not directly tied to producing a specific product or service, such as rent, utilities, and administrative costs.