Terry wants to sell his car and the lowest price he is willing to accept is $3,0
ID: 1092661 • Letter: T
Question
Terry wants to sell his car and the lowest price he is willing to accept is $3,000. Alice likes the car and is willing to pay at most $4,000 for it. They begin to negotiate to arrive at a price. Which of the following statements will be true?
a. They are playing a zero-sum game. b. They are playing a positive-sum game where their benefits add up to $1,000. c. The longer they take to arrive at an agreed price, the lower the benefit to them. d. The higher the price they agree on, the greater the benefit to both.Explanation / Answer
a. They are playing a zero-sum game.
A zero sum game is a siutation where one party's gain (or loss) of utility is exactly balanced by the losses (or gains) of the utility of the other party(s).
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