William Owns a Car That He Values at $3000

question 6

Multiple Choice

William owns a car that he values at $3000.Jackson values the car at $5000.The negotiations between them for a potential trade are as follows: William offers a price to Jackson.If Jackson accepts, trade takes place at that price.If Jackson rejects no trade takes place.William keeps the car and Jackson gets a payoff of $0.Given the equilibrium outcome of the negotiations, what are the realized gains from trade?

• A)$1000
• B)$2000
• C)$3000
• D)$4000
• E)$5000

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Definitions:

Cerebral Cortex

The outer layer of the brain's cerebrum, involved in high-level functions such as sensation, voluntary muscle movement, thought, reasoning, and memory.

Lobes

Divisions or sections of an organ in the body, notably in the brain, defined by natural divisions like folds, grooves, or fissures.

Genotype

An organism's complete set of genetic material, including all of its genes, which can influence physical appearance, behavior, and disease risk.

Phenotype

The observable physical or physiological traits of an organism, resulting from the interaction of its genetic makeup and environmental influences.