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HW help, if you can. Thank you! Suppose that Alpha Inc., Richardson Industries, and K-Tek are the only three firms interested in a plot of

HW help, if you can. Thank you!

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Suppose that Alpha Inc., Richardson Industries, and K-Tek are the only three firms interested in a plot of land on the outskirts of town. The lot is being auctioned by a second-price sealed-bid auction. Alpha values the lot at $11,000, Richardson at $14,500, and K-Tek at $18,500. Each bidding firm's consumer surplus is CS = Vi - P if it wins the auction and 0 if it loses. The values are private. What is each bidder's optimal bid? Who wins the auction, and what price does that firm pay? Alpha's optimal bid is $ , Richardson's optimal bid is $ , and K-Tek's is $ . (Enter your responses as whole numbers.) The auction winner will be , who will pay $

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