1. Consider a second price auction with n bidders, whose valuations are independent draws of a random variable with distribution function F(v) = 1 - (1 + a - v), where a 2 0 and B > 0. the problem of monopoly fixed fee brokerage analyzed in class. (a) Show that F(v) is a legitimate distribution function. Compute its density, and determine on what interval it is positive. (b) Analyze how the distibution function depends on the parameters a and B. Why can we not have 3 = 0? (c) Determine the seller's optimal reserve price when her cost equals c 2 0. (d) How does the optimal reserve price depend upon n? How does it depend upon a, B and c