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Anna's Antiques Expects to Get Two Bidders for the Unique

question 78

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Anna's Antiques expects to get two bidders for the unique china teacup it sells.Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability.If Anna instead holds an oral auction between the two bidders and one bidder of each type shows up,she earn ___ from the auction.


Definitions:

Negative Thinking

A cognitive pattern where an individual consistently anticipates undesirable outcomes or views situations pessimistically.

Free Association

A psychoanalytic technique where the patient verbalizes thoughts as they occur without censorship or filtering, to uncover unconscious processes.

Unconscious

Refers to the part of the human mind that is beyond awareness, holding thoughts, memories, and desires that are not accessible through conscious thought.

Resistance

The refusal to accept or comply with something; in a psychological context, it could refer to the opposition to change or the treatment process.

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