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The Following Graph Shows the Bid Value and Probability of Winning

question 98

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The following graph shows the bid value and probability of winning an auction for an oil painting under a first-price sealed bid auction with private values. The bidder is willing to pay a maximum of £2000 for the oil painting. Refer to the graph to answer the question. The following graph shows the bid value and probability of winning an auction for an oil painting under a first-price sealed bid auction with private values. The bidder is willing to pay a maximum of £2000 for the oil painting. Refer to the graph to answer the question.   The expected value from winning the auction at £1500 is equal to the area _____. A)  A + B + C + D + E + F B)  E + F+ D C)  B + C + D D)  C + D + E + F The expected value from winning the auction at £1500 is equal to the area _____.


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