One Assumption That Economists Often Make While Determining the Outcome

question 32

Multiple Choice

One assumption that economists often make while determining the outcome of a Dutch auction is that the bidders are ________.

• A) risk neutral
• B) risk averse
• C) risk seekers
• D) rent seekers

---

Definitions:

External Party

An individual or organization that is outside the primary organizations or individuals involved in a particular situation or transaction.

Contract Bid

The process of submitting a proposal to undertake a specific project or job, often within a competitive context.

Strict Guidelines

Rigorous and precise instructions or rules that must be followed carefully.

Sales Proposal

A written document designed to offer products or services to potential buyers, outlining the benefits, pricing, and terms of the sale to persuade the customer to make a purchase.