(Solved): Say that you are bidding in a sealed-bid auction and that you really want the item being auctioned ...

Say that you are bidding in a sealed-bid auction and that you really want the item being auctioned. Winning it would be worth $700 to you. Say you expect the next-highest bidder to bid $500. a. In a standard "highest-bid" auction, what bid would a rational person make? O The rational choice is to bid just under $700 so that you have a higher chance of winning the auction and would still have a net benefit. O The rational choice is to bid a little bit more than $500 because that is the expected next-highest bid. O The rational choice is to bid $700 since that is what the item is worth to you. O The rational choice is to bid over $700 to guarantee that you win the item. b. In a Vickrey auction, what bid would he make? O The rational choice is to bid slightly less than $700. O The rational choice is to bid slightly more than $500. O The rational choice is to bid $700. O The rational choice is to bid slightly more than $700.