What Is the Dominant Strategy in a Second-Price Auction

question 100

Multiple Choice

What is the dominant strategy in a second-price auction?

• A) bidding below one's true value
• B) bidding above one's true value
• C) bidding one's true value
• D) There is no dominant strategy.

---

Definitions:

Manufacturing Cost

The total expense incurred in the production of goods, including raw materials, labor, and overhead costs.

Fixed Overhead

Indirect costs of manufacturing that remain relatively constant regardless of the level of production, such as rent, utilities, and salaries of managers.

Normal Production Costs

The typical expenses incurred in the process of producing goods, including direct labor, materials, and overhead.

Foreign Buyer

An individual or corporation from another country that purchases goods or services from a domestic seller.