Question $6$

$3\mathrm{.}25$ pts

Jane, Tom, and Jill are participating in a Second$-$price auction. Jane has a reservation value of $3,$ Tom has a reservation value of $4,$ and Jill has a reservation value of $8.$ If bidders use dominant strategies, which of the following will be the winning bid and the price paid by the auction winner.

The winning bid will be $8$ and the price paid will be $4$

The winning bid will be $8$ and the price paid will be $8$

The winning bid will be $4$ and the price paid will be $4.$

The winning bid will be $4$ and the price paid will be $8.$

The winning bid will be $8$ and the price paid will be $3.$