You are one of five risk-neutral bidders participating in an independent private values auction. Each bidder perceives that all other bidders' valuations for the item are evenly distributed between $40,000 and $80,000. For each of the following auction types, determine your optimal bidding strategy if you value the item at $58,000.

a. First-price, sealed-bid auction.

multiple choice 1

• Bid $40,000
• Bid $58,000
• Bid $80,000
• Bid $54,400

b. Dutch auction. multiple choice 2

• Let the auctioneer continue to lower the price until it reaches $58,000, and then yell "Mine!".
• Let the auctioneer continue to lower the price until it reaches $54,400, and then yell "Mine!".
• Let the auctioneer continue to lower the price until it reaches $80,000, and then yell "Mine!".
• Let the auctioneer continue to lower the price until it reaches $40,000, and then yell "Mine!".

c. Second-price, sealed-bid auction. multiple choice 3

• Bid $58,000
• Bid $40,000
• Bid $80,000
• Bid $54,400

d. English auction. multiple choice 4

• Remain active until the price exceeds $40,000, and then drop out.
• Remain active until the price exceeds $80,000, and then drop out.
• Remain active until the price exceeds $54,400, and then drop out.
• Remain active until the price exceeds $58,000, and then drop out.