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?

In a first-price auction, the highest bidder wins and pays the exact amount of their bid. The publisher's price floor of $1.00 means bids below this amount are not considered. Advertiser A's bid of $0.89 is below the price floor, so they are out. Advertiser B bids $1.04 and Advertiser C bids $1.11. Since Advertiser C has the highest bid at $1.11, and this bid is above the price floor, Advertiser C wins and pays their bid of $1.11. Advertiser A cannot win because their bid is too low. Advertiser B does not win because Advertiser C bid higher. The winning advertiser always pays their exact bid in a first-price auction, not a different amount like $1.05.