There Are Three Firms (Firm 1,2,and 3)in a Competitive Procurement,each

Multiple Choice

There are three firms (Firm 1,2,and 3) in a competitive procurement,each with independently-drawn costs.All costs are in between the range $300,000-$400,000 and are considered equally likely.Here,??????b1= sealed bid amount of firm 1 and c1= firm 1's costs (Both in $ thousand) .Then accordingly,firm 1's optimum equilibrium strategy would be:

A) b₁ = c₁.
B) b₁ = (0.5) (300,000) + 0.5c₁.
C) b₁ = (0.5) (400,000) + 0.5c₁.
D) b₁ = (1/3) (300,000) + (2/3) c₁.
E) b₁ = (1/3) (400,000) + (2/3) c₁.