The World Times, a publisher, has set their inventory’s price floor to $1.00. Advertiser A bids $0.89, Advertiser B bids $1.04, and Advertiser C bids $1.11. What is the outcome in a first-price auction?

  • Advertiser A wins and pays $1.04
  • Advertiser C wins and pays $1.11
  • Advertiser C wins and pays $1.05
  • Advertiser B wins and pays $1.11

The correct answer is:

  • Advertiser C wins and pays $1.11.

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