Scenario: John, Jacob, Alex, and Maria Participate in a First-Price

Multiple Choice

Scenario: John, Jacob, Alex, and Maria participate in a first-price auction for an iPod. John values the iPod at $400, Jacob values it at $300, Alex values it at $250, and Maria values it at $200.
-Refer to the scenario above.The winner of this auction will earn a surplus of ________ if he or she follows his or her dominant strategy.

A) $100
B) $300
C) $400
D) $200