Real Income Is

question 60

Multiple Choice

Real income is:

• A)wL + i(B+K)
• B)(w/P)L + i((B/P)+ K)
• C)(w/P)L + i((B/P)+(K/P))
• D)(w/P)L + i(B+ K)

Grasp the concept of BATNA as a significant source of negotiation power.

Identify the significance of managing coalitions and the perceptions of fairness and rationality.

Realize the impact of one's negotiation reputation and how to protect it.

Understand the paradoxes inherent in negotiation strategies.

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Definitions:

Initial Outlay

The initial investment amount or the upfront cost required to start a project or investment.

Sunk Cost

A cost associated with a project expended prior to making the decision to undertake that project (for example, the cost of research into the idea). Since sunk funds are already gone, they cannot alter future costs or benefits, and should not be included in the analysis leading to a decision.

Opportunity Cost

The benefit foregone by using an asset in a particular way. Usually the income or benefit it would produce in its next best use.

Cash Outflow

Money going out of a business or individual's account, typically to pay for expenses, investments, or acquisitions.