Suppose That Hans and Frans Are Bidding for an 1878CC

Multiple Choice

Suppose that Hans and Frans are bidding for an 1878CC Morgan silver dollar. Hans knows that Frans is willing to pay $1,150. Frans knows that Hans is willing to pay $975. Suppose that the seller's reservation price is $800 and bids are in $100 increments. The winner of this sealed-bid, second-price auction will pay:

A) $900.
B) $1,000.
C) $1,100.
D) $1,200.
E) None of the above.