Question

Katy is holding an English auction. If she estimates the values of her bidders to be $2, $4, $10, $15 and $25, she should expect to be able to make ____ off the auction. Group of answer choices Just above $10 Just below $10 Just above $15 Just below $15

Answer 1

Answer:

"$25" i.e., Option c (Just above $15) is the correct answer.

Explanation:

English auctions vary from certain auctions seeing as how the auctioneer proceeds to bid at both the cheapest price appropriate to the seller and therefore only allows buyers should bid larger than the corresponding highest bidder. Increasing bidder seems to have an ability to look at other offers and amend his rather than her bid.

• For both the highest bidder, the competition ends with either the product being offered to the very last bidder. The winner simply spends a marginally higher amount now than the 2nd greatest bidder's valuation.
• An English auction is organized by Katy. She would hope to be allowed to make $25 from the auction whether she calculates her bidders' prices would be $2, $4, $10, $15 as well as $25 since this represents the highest price.

Some other options offered really aren't relevant to either the situation described. So, the solution is indeed the right one.