Which of the Following Is Not True About Auctions

question 6

Multiple Choice

Which of the following is not true about auctions?

• A) Unless an auction is advertised as being without reserve, the sale is with reserve.
• B) If the auctioneer knowingly receives a bid on behalf of the seller and notice has not been given that the seller reserves the right to bid at the sale, the bidder to whom the goods are sold can avoid the sale.
• C) The UCC provides that if an auction sale is advertised or announced in explicit terms to be with reserve, the auctioneer may not withdraw the article put up for sale unless no bid is made within a reasonable time.
• D) Whether an auction is with or without reserve, a bidder may retract his bid at any time prior to acceptance by the auctioneer.

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Definitions:

Allocative Efficiency

A state of resource allocation where it is not possible to make any one individual better off without making at least one individual worse off.

Average Variable Cost

The total variable cost divided by the quantity of output produced; it represents the variable cost per unit of output.

Marginal Cost

Marginal cost is the cost of producing one additional unit of a good or service.

Consumer Demand

The desire of purchasers, consumers, clients, or users to buy goods and services measured over time.