Cane and Abe are bidding for a painting at an auction. Cane has willingness to pay WC and Abe has willingness to pay WA. Cane does not know Abeâs willingness to pay, and Abe does not know Caneâs willingness to pay. The auctioneer has set the rules of the auction to be a second price sealed bid auction. In this auction, Cane and Abe will each submit a bid in a sealed envelope, bC and bA, respectively. Upon receiving both envelopes, the auctioneer will open them and give the painting to the highest bidder at a price equal to the loserâs bid. Caneâs payoff function is Î C (p) = Wc âp if he gets the painting at price p. If he does not get the painting he has payoff equal to zero. Similarly, Abeâs payoff is Î A (p) = WA â p if he gets the painting at price p, and zero otherwise.

1. Determine Cane's best response to Abe submitting a bid of ba, bc (6A).
2. Cane has a weakly dominant strategy. What is it?

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The vaska company buys a patent on january 1, year one, and agrees to pay $100,000 per year for the next five years. the first payment is made immediately, and the payments are made on each january 1 thereafter. if a reasonable annual interest rate is 8 percent, what is the recorded value of the patent? 1. $378,4252. $431,2133. $468,9504. $500,000

Acompany is developing a new high­performance wax for cross country ski racing. in order to justify the price marketingwants, the wax needs to be very fast. specifically, the mean time to finish their standard test course should be less thanseconds for a former olympic champion. to test it, the champion will ski the course 8 times. the champion's times(selected at random) are 59.9 61.9 48.8 52.2 46.6 45.3 50.6 and 41.1 seconds to complete the test course. complete parts a and b below.a) should they market the wax? assume the assumptions and conditions for appropriate hypothesis testing are metfor the sample.assume=0.05. what are the null and alternative hypotheses? choose the correct answer below.b) suppose they decide not to market the wax after the test, but it turns out that the wax really does lower the champion'saverage time to less thanseconds. what kind of error have they made? explain the impact to the company of such anerror.