Multiple Choice
In a sealed-bid auction,a firm with a reservation price of $48,000 submits a bid of $40,000.If its probability of winning is 0.75,then its expected profit from the auction is _____.
A) $8,000
B) $2,000
C) $6,000
D) $4,000
E) $2,500
Correct Answer:
Verified
Correct Answer:
Verified
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