Suppose that you have one unit of a good and two potential buyers. The good is worth 0 to you. You believe that each buyer’s valuation is uniformly distributed on [0, 1], and the two buyers’ valuations are independent of one another. Suppose you decide to run a second-price auction with a reserve price. If you want to maximize your average profit, what reserve price should you set?

Answers

Answer 1

By setting the reserve price at 1/2, you maximize your average profit in the second-price auction.If the highest bid is below the reserve price, no transaction occurs, and you keep the good.

to maximize your average profit In a second-price auction with a reserve price, you should set the reserve price equal to your expected value of the good.

in this case, since the good is worth 0 to you, your expected value is also 0.

the second-price auction determines the winner based on the highest bid, but the price paid is the second-highest bid. since each buyer's valuation is uniformly distributed on [0, 1], the expected highest bid can be calculated as the average of the maximum value from each buyer's distribution.

the expected highest bid is given by the formula:

expected highest bid = (1/2) * (1 + 0) = 1/2

since your expected value is 0, and the expected highest bid is 1/2, you should set the reserve price at 1/2. if the highest bid is below the reserve price, no transaction occurs, and you keep the good without any loss.

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Related Questions

Is Dodgetown, 196 of the 200
Businesses have fewer than 500 employees.what percentage of businesses in dodgetown have more than 500 employees?

Answers

Answer:

-SBs usually employ more people overall, but most of those jobs are low wage-Most SBs have sales < $100K-75% of all SBs have no payroll, only create a job for the owner and about 50% fail in 1st 5 yrs., another 50% fail in second 5 yrs.

Explanation:

Shaili bought a bond from Penny’s Pickles, Inc at par value ($1000) with a coupon rate of 6% and a maturity date 10 years in the future...

If interest rates are currently 3.5%, and Shaili sold the bond today, would she expect to get more than, less than, or equal to $1000 for it?

Answers

Answer:

I believe its less than.

Explanation:

Sorry if I am wrong

If the u. S. Dollar appreciates and prices remain the same at home and abroad, foreign goods become ________ expensive relative to american goods, pushing the u. S. Trade balance toward ________.

Answers

If the u. S. Dollar appreciates and prices remain the same at home and abroad, foreign goods become less expensive relative to American goods, pushing the U. S. Trade balance toward a deficit.

What does it mean when a currency appreciates?

A currency appreciates when the value of the currency increases. For example if $1 is equivalent to 1000 rubles. If the US dollar appreciates, it can buy more rubles. For example 1200 rubles.

When a currency appreciates, it purchasing power increases. Thus, import would increase and export would reduce. This would lead to a negative trade balance.

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In this market research step, the data are compiled, studied, and interpreted:

Answers

Answer:

Data Preparation/Assembling Analysis

Explanation:

In the data analysis step of Market Research, the data collected in the research are put together, arranged in an organized form, put through detailed review, properly verified by an valid process, interpreted and expounded

In the preparation and analysis step, the data is formatted by editing, coding, transcription and verification to enable accurate analysis of the collected information. Data validation process is put in place to ensure that the proper data that quantifies the desired metrics are obtained.

The process of data preparation and analysis enables the decision making process by promoting the process of suggesting conclusions, whereby useful information is highlighted by the modelling, transformation, cleaning, and inspection data analysis processes

Do you agree with the use of forced distribution methods to rate employees? Why or
why not?  How does this differ from the 360-degree feedback method? Support your answer with external resources/articles.
a minimum of two (2) sources referenced (at the end of your answer) and cited (as appropriate within your answer). Your response (minimum of 300 words) should be a thoughtful, objective academic analysis of the OBHR concepts being learned in the course.

Answers

Forced distribution method, also known as forced ranking, is a performance management system that ranks employees on the basis of their performance. It is used to determine which employees should be promoted or given a pay raise.

This method requires the manager to rate each employee based on a pre-defined scale and rank them from best to worst performers. I believe that the use of forced distribution methods to rate employees is not an ideal way to evaluate the performance of an employee. This method may lead to several problems such as demotivation of employees, favoritism, and bias. The use of this method can be considered as a harsh and demotivating way of evaluating the employees' performance.

Employees will be ranked based on their performance, and there will always be someone who is at the bottom of the ranking. This may lead to a demotivated workforce who might feel neglected and undervalued.  Moreover, it is an effective way to identify the training needs of employees, as it highlights the areas where an employee needs to improve. The feedback is provided anonymously, which encourages employees to be honest and transparent in their feedback. As a result, it provides a more accurate and comprehensive evaluation of an employee's performance.  In conclusion, the use of forced distribution methods to rate employees is not an ideal way to evaluate the performance of an employee. Instead, companies should use a performance management system that is fair, objective, and transparent, such as 360-degree feedback.


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What are the three signs of workplace discrimination?

Answers

Answer:

Inappropriate Questions During a Job Interview.

Lack of Diversity.

Harsh or Demeaning Communications.

Unequal Pay.

Unfair Promotions.

Unjust Disciplinary Actions.

The Takeaway.

Explanation:

What is planning? Choose the answer.
O illustrating the hierarchy and work teams within a company
ability to make short- and long-term company direction and goals
allows management to set standards, control costs, and manage change
guiding employees towards achieving company goals

Answers

Answer:

Ability to make short- and long-term company direction and goals

Explanation:

planning involves setting goals and how to achieve them in the best way possible.

how does marmite use product differentiation

Answers

Marmite use product differentiation as viewed as having unique features, such as Marmite or the iPhone. It frequently referred to as a differentiator.

What do you mean by the product differentiation?

The feature or features that set your product or service apart from the competition for your target market are known as product differentiation.

It improves brand loyalty, sales, and growth by highlighting the differences between what you sell and what your rivals provide. These comprise vertical differentiation, mixed differentiation, and horizontal differentiation.

In the financial situation of today, product differentiation is crucial. It enables the seller to highlight the distinctive qualities that make their product outstanding by drawing comparisons between their own product and those of the market's rival products.

Therefore, Marmite use product differentiation as viewed as having unique features, such as Marmite or the iPhone. It frequently referred to as a differentiator.

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A company's balance sheet shows: cash $40,000, accounts receivable $25,000, office equipment $59,000, and accounts payable $26,000. What is the amount of stockholders' equity

Answers

Answer:

the amount of stockholders' equity is $98,000

Explanation:

It is important to remember that the Balance Sheet uses the Accounting equation :

Accounting Equation states that :

                                      Assets = Equity + Liabilities

This can be also stated as :

                                         Equity = Assets - Liabilities

Where,

Assets = $40,000 + $25,000 + $59,000 = $124,000

Liabilities = $26,000

Therefore,

Equity = $124,000 - $26,000

           = $98,000

Conclusion :

Using the Accounting Equation we have solved the amount of stockholders' equity as $98,000

your client, who does not have a will and does not plan to write one, recently purchased a tract of farmland to include in the family farming operation. he wants the entire tract to pass upon his death to his son, who will continue the farming operation. he wants the remainder of his property to pass to his wife. you should advise him that, to accomplish his objectives, the most appropriate form of titling to use for the farmland tract is

Answers

You should advise him that, to accomplish his objectives, the most appropriate form of titling to use for the farmland tract is joint tenancy with the right of survivorship with his son and wife. Option D

This is further explained below.

What is joint tenancy?

Generally, Joint tenancy is a kind of property ownership in which several tenants co-own one and the same piece of real estate under one deed at the same time.

In conclusion, You should let him know that, in order to achieve his goals, joint tenancy with right of survivorship is the most suitable type of titling to utilize for the farming tract, and that this should be done in conjunction with his son and his wife. The D Option

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complete question

Your client, who does not have a will and does not plan to write one, recently purchased a tract of farmland to include in the family farming operation. He wants the entire tract to pass upon his death to his son, who will continue the farming operation. He wants the remainder of his property to pass to his wife.

You should advise him that, to accomplish his objectives, the most appropriate form of titling to use for the farmland tract is

A)

tenancy in common with his son and wife.

B)

joint tenancy with right of survivorship with his son.

C)

tenancy in common with his son.

D)

joint tenancy with right of survivorship with his son and wife.

state three
function of warehousing​

Answers

Answer:

-Storage

-Financing

-Price Stabilization

-Time utility

Explanation:

PLEASE HELP ME!! please, please,, please explain how you got it, thank you

PLEASE HELP ME!! please, please,, please explain how you got it, thank you

Answers

Answer:

I think the second one.

1/10 cookies per pizza

Most of texas's public policies reflect which political ideology?
a. moderate
b. independent
c. liberal
d. conservative

Answers

Most of Texas's public policies reflect which political ideology

Conservative

Correct option is  (D)

What is the public policy process in Texas?

The politics process in Texas begins with the emergence of issues and proceeds through five subsequent stage of agenda settings, policy selection, policy enactment, policy implementation, and policy evaluation.

Who makes policies in Texas?

The legislature meets every odd-numbered year to write down new laws and to find solutions to the problems facing the state. This meeting time, which begins on the second Tuesday in January ands lasts 140 day, is named the regular session. The governor can direct the legislature to satisfy at other times also.

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How is a game designer different from a writer?

Answers

Answer:game desighners are mostly online

Explanation:

Game designers work with programming and coding writers use words

How important is money

Answers

Answer:

very important

Explanation:

money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.

Which of the following is not a business-to-business (B2B) market.

A. Raw Materials
B. Process materials
C. Major equipment
D. Shopping Goods

Answers

Answer:

I don't know the exact answer but I guess it will be option (B) process materials

Which of the following is a reason that marketing to Hispanics has proven to be a challenge?
Hispanics don't consider advertising a credible source of product information.
Hispanic communities are spread across the entire country and therefore are difficult to target.
The Hispanic subculture is diverse.
Hispanics prefer imports to American-made products; they tend to be ethnocentric in their product preferences.
Assimilation is valued and the Hispanic community finds cultural target marketing offensive.

Answers

Marketing to Hispanics has proven to be a challenge is that the Hispanic subculture is diverse.

Hispanic communities are spread across the entire country, making them difficult to target effectively. Additionally, some Hispanics may not consider advertising a credible source of product information, and others may prefer imports to American-made products. Finally, assimilation is valued in the Hispanic community, and some may find cultural target marketing offensive.


Marketing to Hispanics can be challenging due to the diversity within the Hispanic subculture. This means that there are varying preferences, traditions, and values among different groups, making it difficult to create a unified marketing approach that resonates with all.

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have u tried edgenuity

Answers

Answer:

No, I do odyssey ware

Explanation:

Answer:

yea but I wouldn't mind burning it...

Explanation:

When opening an account What are the 3 things you need to do?

Answers

You must decide on a bank and give it the required documentation, such as identification and proof of address, in order to opening an account.

Usually, in order to be eligible, you must be 18 years old. Finally, in order to avoid costs, you might need to fund the account or maintain a minimum level. You will require a government-issued ID, your ID number, and your physical and mailing addresses in order to open an account.

You should read the disclosures before choosing an account so that you are aware of any account fees or minimum balance requirements. Depending on the characteristics you need, such as high interest rates, low minimum balance requirements, no ATM fees, or something else, you can choose the bank or account you desire. You must provide the bank or credit union with paperwork when you open a new bank account so they can confirm your identity.

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Exercise 1 (30 points) Consider the Solow growth model andsuppose that the production function is given by Y = K0. 2N0. 8 whereK stands for aggregate capital and N stands for labor. Moreover thepopulation growth rate is equal to 2%, depreciation rate is 5% and marginal propensity to save is assumed to be equal to 21%.

a) What is the growth rate of K at the steady state?

What is the growth rate of k at the steady state?

b) calculate k ∗ , y ∗ and c ∗ for s = 0. 25, s = 0. 45, s = 0. 65 and s = 0. 85. Create a table summarizing your results.

Can you say anything about the golden rule consumption?

Answers

In the Solow growth model, the golden rule consumption refers to the optimal level of consumption that maximizes the steady-state welfare of the economy. In this given scenario, the production function is Y = K^0.2N^0.8, with population growth rate (n) at 2%, depreciation rate (δ) at 5%, and marginal propensity to save (s) at 21%.

To determine the golden rule consumption, we must first find the steady-state capital per worker (k*). Using the Solow model, we can set up the equation: sY = (δ + n)K. With the given production function, we substitute Y with K^0.2N^0.8, and then divide both sides by N to get k*.

Next, we plug in the values for s, δ, and n to solve for k*. Once we have k*, we can find the steady-state output per worker (y*) by substituting k* into the per-worker production function, y = k^0.2. Lastly, to find the golden rule consumption per worker (c*), we use the equation c* = y* - (δ + n)k*.

In conclusion, by calculating the steady-state capital, output, and consumption per worker, we can determine the golden rule consumption level that maximizes the welfare of the economy in the given Solow growth model with the specified parameters.

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land, labor, and capital are factors of production that can lead to the accumulation of wealth. the needed factor added only by entrepreneurs is:

Answers

Land, labor, and capital are factors of production that can lead to the accumulation of wealth. the needed factor added only by entrepreneurs is knowledge and willingness to take risks to build a business.

What are the factors of production?

The resources that make up the economy's foundation and are used as production factors by individuals to create commodities and services The four categories of factors of production that economists distinguish between are land, labour, capital, and entrepreneurialism. Inputs, resources, or components of production are what are utilised in the production process to produce output, which in economics refers to commodities and services. According to the relationship known as the production function, the amounts of the various inputs used influence the amount of output. Businesses should be able to increase output and produce things of greater quality at cheaper costs if they can raise the efficiency of the production elements. Any increase in output results in economic expansion as indicated by the GDP.

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Lauren has gross pay of $765 and federal tax withholdings of $68. Determine Lauren's net pay if she has the additional items withheld: Social Security tax that is 6. 2% of her gross pay Medicare tax that is 1. 45% of her gross pay State tax that is 22% of her federal tax a. $691. 52 b. $666. 21 c. $636. 98 d. $623. 52 Please select the best answer from the choices provided A B C D.

Answers

To calculate Lauren's net pay, we need to subtract the various withholdings from her gross pay. Lauren's net pay is $691.52.

First, the Social Security tax, which is 6.2% of her gross pay ($765 * 0.062 = $47.43).

Then, the Medicare tax, which is 1.45% of her gross pay ($765 * 0.0145 = $11.09). Next, we calculate the state tax, which is 22% of her federal tax withholdings ($68 * 0.22 = $14.96).

Now, we subtract the total withholdings from the gross pay to find the net pay: $765 - $68 - $47.43 - $11.09 - $14.96 = $623.52. Therefore, the correct answer is option d, $623.52.

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how old do you have to be to work at lululemon

Answers

Answer:

The minium age requirement to work there is 18

Green Mountain is a very __________ organization, delegating authority to lower level managers to encourage passion and commitment

Answers

Green Mountain is a very Decentralized organization, delegating authority to lower level managers to encourage passion and commitment.

A decentralized organizational structure?

A decentralized organizational structure is one in which top management has given some sorts of decision-making authority to lower levels of the company.

illustration of a decentralized organization?

Lower rungs of the organizational hierarchy have decision-making authority in a decentralized organization. An illustration of a decentralized organization is a network of fast food restaurants. The chain's franchised eateries are each in charge of their own operations.

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When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must

Answers

When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.

This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.

To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.

Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.

Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.

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Helena is only a couple months into running her nail salon business and she
has just paid all of her expense for the month. She made $5,000 for the
month of June and her expenses totaled about the same. Which term best
describes this occurrence?
A. Return on investment
B. Break-even point
C. Survival pricing
D. Markup plan

Answers

Answer:

B. Break-even point

Explanation:

APEX

The given situation can be best described as the Break-even point. Hence, Option B is correct.

What does Break-even point mean?

In economics, business, and particularly cost accounting, the break-even point is the point at which total cost and total income are equal, or "even."

Although opportunity costs have been paid and capital has received the risk-adjusted, projected return, there is no net loss or gain, and one has "broken even."

The break-even threshold is reached when overall costs and total revenues are equal, leaving small firm with no net benefit or loss. In other words, when an individual achieved the point in production where the revenue from a product equals the cost of manufacture.

Therefore, Option B is correct as the expenses and income both are same in the month of June.

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hassock corporation produces woven wall hangings. it takes 2 hours of direct labor to produce a single wall hanging. hassock’s standard labor cost is $12 per hour. during august, hassock produced 10,000 units and used 21,040 hours of direct labor at a total cost of $250,376. what is hassock’s labor rate variance for august? multiple choice $2,104 favorable. $2,000 favorable. $4,160 favorable. $2,000 unfavorable. $2,104 unfavorable.

Answers

Hassock Corporation's labor rate variance for August is $2,104 favorable. A favorable variance means the actual labor cost is lower than the standard labor cost. This could be due to factors like lower labor rates or more efficient labor usage.

To calculate the labor rate variance, we need to compare the actual labor cost per hour with the standard labor cost per hour. The standard labor cost per hour is given as $12.

First, we calculate the standard labor cost based on the actual hours worked. In this case, the actual hours of direct labor used in August were 21,040 hours.

So, the standard labor cost would be $12 per hour multiplied by 21,040 hours, which equals $252,480. Next, we compare the standard labor cost with the actual labor cost.

The actual labor cost for August was $250,376.

Labor Rate Variance = Standard Labor Cost - Actual Labor Cost
= $252,480 - $250,376
= $2,104 favorable

Thus, the labor rate variance represents the difference between the standard and actual labor cost.

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QUESTION 1
The IRR is a rate of return at which the NPV is equal to zero.
True
False
5 points
QUESTION 2
IRR provides information about a project's safety margin.
True
False
5 points
QUESTION 3
Consider the following two projects.
Project A: IRR=15%, Cost of capital = 12%
Project B: IRR=18%, Cost of capital=20%
Project B should be chosen.
True
False

Answers

True

5 points

False

5 points

True

5 points

Project B should be chosen.

False

5 points

Question 1 is True.

Question 2 is False.

Question 3 is  False.

Question 1

IRR is used to assess the profitability of a possible investment. IRR is the discount rate at which the future cash flows have a net present value (NPV) of zero.

Question 2

IRR reveals a project's expected rate of return, but it does not provide its safety margin. The term "safety margin" describes how risky a project's expected returns are. A project might have a high IRR. However, if the assumptions used to calculate the IRR are wrong or imprecise, the actual returns may differ greatly from the forecasted returns, lowering the project's safety margin.

Question 3

Since Project A has a positive net present value (NPV) and is anticipated to produce a return greater than the cost of capital, it will be a better choice than Project B given that all other factors remain the same for the two projects.

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True

5 points

False

5 points

True

5 points

Project B should be chosen.

False

5 points

Question 1 is True.

Question 2 is False.

Question 3 is  False.

Question 1

IRR is used to assess the profitability of a possible investment. IRR is the discount rate at which the future cash flows have a net present value (NPV) of zero.

Question 2

IRR reveals a project's expected rate of return, but it does not provide its safety margin. The term "safety margin" describes how risky a project's expected returns are. A project might have a high IRR. However, if the assumptions used to calculate the IRR are wrong or imprecise, the actual returns may differ greatly from the forecasted returns, lowering the project's safety margin.

Question 3

Since Project A has a positive net present value (NPV) and is anticipated to produce a return greater than the cost of capital, it will be a better choice than Project B given that all other factors remain the same for the two projects.

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When will the Social Security fund dry up at Its current level?
• A.
2022
© B.
2027
• C
2037
© D. 2097
© E. 2117

Answers

Answer:

c. 2037

Explanation:

As a result of changes to Social Security enacted in 1983, benefits are now expected to be payable in full on a timely basis until 2037, when the trust fund reserves are projected to become exhausted.

The correct answer would be C.

A 6. 75% coupon bond with 13 years to maturity can be called in 2 years. The call premium is one year of coupon payments. It is offered for sale at $929. 75. What is the yield to call of the bond? interest payments are annual and par value is $1,000.

Answers

The yield to call of the bond at 6.75% is of 3.26% at call value of $929.

What is yield to call ?

Yield to call (YTC) is a term used in finance to describe the return a bondholder will earn if they stay onto the bond until the call date, which happens before it matures. The compound interest rate at which the present value of a bond's future coupon payments and call price equals the bond's current market price may be used to compute this figure.

Callable bonds, a type of financial instrument that enables bond holders to redeem their bonds at a price known as the call price on a date known as the call date, or the bond issuer to repurchase the bonds, are subject to yield to call. By definition, a bond's call date comes before its maturity date in time.

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