Multiple Choice
In a sealed-bid auction, a firm with a reservation price of $480,000 submits a bid of $400,000. If its probability of winning is .75, then its expected profit from the auction is:
A) $60,000
B) $75,000
C) $80,000
D) $300,000
E) There is not enough information to provide an answer.
Correct Answer:
Verified
Correct Answer:
Verified
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