"Auctions" Lecture (Ch I+II)

Question 1

Equation for profit

Answer 1

Profit = Revenue-cost

Question 2

When multiple firms or people combine and maximize or split profits. Firms maximize profits at expense of consumers. Is highly illegal in the United States.

Answer 2

Collusion

Question 3

Wealth of a country

Answer 3

GDP

Question 4

Wealth per individual people in a country (average)

Answer 4

GDP per capita

Question 5

Received offers from suppliers,forecasts demand, picks price, whom gets to sell product

Answer 5

Independent system operator

Question 6

Sorts bid by price, set price equal to last need to meet demand. Buyer determines price.

Answer 6

Uniform price auction

Question 7

Dollar :Yuan exchange rate

Answer 7

$0.16=1.00 Yuan

Question 8

Fluctuate throughout the day and prices increase or decrease as this increases or decreases

Answer 8

Demand Changes

Question 9

Only one party bids.

Answer 9

Single-sided Auction

Question 10

Both parties can bid in this type of auction.

Answer 10

Double-Sided Auction

Question 11

When bidders don’t know each other’s bids

Answer 11

Sealed bid

Question 12

When people know other people’s bids

Answer 12

Open Outcry (Auction)

Question 13

The amount a product, good, or service is worth to someone purchasing it.

(You should not exceed this price, otherwise you will incur a negative profit)

Answer 13

Buyer Value

Question 14

Willingness to sell or reservation price for an item

Answer 14

Seller Costs

Question 15

In a uniform price auction, your bid determines weather you’re in or not, but not necessarily _

Answer 15

Profit