Ethan Paid $3 for a Bottle of ThirstAid

question 8

Multiple Choice

Ethan paid $3 for a bottle of ThirstAid.Later while on a hiking trip,she was offered $8 for the ThirstAid.Select the correct statement from the following:

• A) The $8 offer is not relevant if Ethan refuses to sell the ThirstAid.
• B) If Ethan drinks the ThirstAid,no opportunity cost is associated with his decision.
• C) The $3 original purchase price is irrelevant to his decision to sell the ThirstAid.
• D) All of the above.

Understand the concept of an English auction and how reservation prices affect expected revenue.

Calculate expected revenue in auctions with different setups and bidder valuations.

Compare the outcomes of auctions with and without reservation prices.

Differentiate between English auctions and sealed-bid second-price (Vickrey) auctions.

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Definitions:

Surveys

Research tools composed of a series of questions designed to gather information about opinions, behaviors, or characteristics.

Archival Studies

Research involving the use of historical records and documents as primary sources of information.

Naturalistic Observations

A detailed study method where behavior is observed in natural settings without intervention or manipulation by the observer.

Case Studies

Comprehensive examinations of individual instances, locations, events, or entities to explore and analyze complex issues in detail.