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.
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.
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