You are advising a small city government that is preparing t…

Yоu аre аdvising а small city gоvernment that is preparing tо auction off salvage rights to an old factory it owns. The winning company will be allowed to remove and resell the scrap metal, machinery, and other reusable materials inside the building. The true resale value of the materials is the same for all bidders, but it is uncertain and unknown at the time of bidding. Each salvage company has inspected the factory and made its own estimate of the total value of the materials, and those estimates vary. Answer the following questions: Is this a common-value or private-value auction? Explain. (1 point) What is the winner’s curse and why is it relevant in this situation? Be specific. (3 points) How should rational bidders adjust their bids in each auction format to account for this type of auction? (3 points) Of the following four auction formats, which would you suggest to generate the most revenue for the city? Explain. (3 points) Choose from English Auction, Dutch Auction, First-price Sealed-bid, and/or Second-price Sealed-bid. Type your answers directly into the textbox below, clearly indicating/labeling which part you are answering. Please keep each answer to 150 words or less.