Question 10: [30 points] Consider a second price auction with 2 bidders, 1 and 2, who have values for the good of 20 and 80, respectively. Each knows...

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Question 10: [30 points] Consider a second price auction with 2 bidders, 1 and 2, who have valuesfor the good of 20 and 80, respectively. Each knows what the other bidder's valuation is so there is no uncertainty. (a) [10 points] Show that choosing a bid equal to one's valuation is a weakly dominant strat-egy for bidder 1. (b) [10 points] Show that if each bidder plays a weakly dominant strategy, the bidder with thehighest value always wins the good (c) [10 points] Is it a Nash equilibrium for bidder 1 to bid 60 and bidder 2 to bid 80? Whichbidder is playing a weakly dominated strategy?