In this question we will consider the effect of collusion between bidders in a secondprice, sealed-bid auction. there is one seller who will sell one object using a secondprice sealed-bid auction. the bidders have independent, private values drawn from a distribution on [0, 1]. if a bidder with value v gets the object at price p, his payoff is v−p; if a bidder does not get the object his payoff is 0. we will consider the possibility of collusion between two bidders who know each others’ value for the object. suppose that the objective of these two colluding bidders is to choose their two bids as to maximize the sum of their payoffs. the bidders can submit any bids they like as long as the bids are in [0, 1].(a) let’s first consider the case in which there are only two bidders. what two bids should they submit? explain.(b) now suppose that there is a third bidder who is not part of the collusion. does the existence of this bidder change the optimal bids for the two bidders who are colluding? explain.

Panera bread is a chain of cafes serving sandwiches, soups, and freshly baked breads. the company began in 1981 with stores primarily located along the east coast of the united states. since then, the firm has expanded to over 1,300 locations throughout the united states and canada. the firm has strong earnings and has been designated by business week as a "significant growth company." panera bread executives are considering the idea of expanding globally by opening cafes in asia through a franchising strategy. which of the following, if true, supports the argument that panera bread should expand into asia through franchising? a: the panera bread menu changes rapidly, and each cafe's artisan bread bakers receive regular training on new recipes. b: panera bread executives want fast access to the asian market without a significant investment of capital. c: panera bread executives want to test the asian market with a short-term commitment that allows them to make quick profits. d: the panera bread mission is to make excellent bread available to customers around the world.

Seattle bank’s start-up division establishes new branch banks. each branch opens with three tellers. total teller cost per branch is $96,000 per year. the three tellers combined can process up to 90,000 customer transactions per year. if a branch does not attain a volume of at least 60,000 transactions during its first year of operations, it is closed. if the demand for services exceeds 90,000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. required what is the relevant range of activity for new branch banks

Ann chovies, owner of the perfect pasta pizza parlor, uses 20 pounds of pepperoni each day in preparing pizzas. order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. if she were to order 80 pounds of pepperoni at a time, what would be the average inventory level?