$$\begin{array} { c c } \text { Output } & \text { Price } \\\hline 1 & \$ 30 \\2 & \$ 27 \\3 & \$ 24 \\4 & \$ 21 \\5 & \$ 18\end{array}$$

question 118

Multiple Choice

$$\begin{array} { c c } \text { Output } & \text { Price } \\\hline 1 & \$ 30 \\2 & \$ 27 \\3 & \$ 24 \\4 & \$ 21 \\5 & \$ 18\end{array}$$
-The marginal revenue that would be derived from the production of the fifth unit is

• A)$24
• B)$21
• C)$12
• D)$6
• E)$3

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Definitions:

Dutch Auction

An auction mechanism where the price starts high and decreases until a bidder accepts the price, securing the sale.

Rational Bidders

Individuals who participate in auctions or bidding processes and make decisions based on maximizing their utility.

Common-Value Auction

In a common-value auction, all bidders have the same valuation for the auctioned item, but they may have different information about the item's actual value.

Private-Value Auction

An auction in which the value of the item being bid on is subjective and differs for each bidder, based on their private evaluation.