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(Consider This) In the middle ages, the French government auctioned off monopoly rights to the sale of salt. Economic theory predicts that the highest bids would Multiple Choice leave substantial economic profits for the winning bidders. equal the economic profits the winning bidder would expect to earn by owning the monopoly rights to sell salt. ensure that prices remained low, making salt available to the masses. equal the winner bidder's explicit costs of selling the salt.

Sagot :

Baraq

Economic theory predicts that the highest bids would equal the economic profits the winning bidder would expect to earn by owning the monopoly rights to sell salt.

Economic theory of bidding

Sellers use auction theory to raise higher revenues while allowing buyers to procure at a lower cost. The conference of the price between the buyer and seller is an economic equilibrium. Auction theorists design rules for auctions to address issues which can lead to market failure.

Therefore, the bidding cost will equate the selling price.

learn more about Economic theory of bidding from here: https://brainly.com/question/26652414

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