Describe the First Step of the Negotiation Process

question 29

Essay

Describe the first step of the negotiation process. How does this step affect negotiating parties' relationship? How does the negotiating parties' relationship help determine the kind of bargaining that will be done (integrative or distributive)?

---

Definitions:

Perfect Competitor

An idealized market structure in which many firms produce identical products, entry and exit are easy, and all participants have perfect information.

Long Run

A period in economics in which all factors of production and costs are variable, allowing for full adjustment to change.

Marginal Cost

The increase in total cost that arises from an extra unit of production.

Total Revenues

Total Revenues refer to the total receipts from sales of goods or services by a company before any expenses are subtracted.