Suppose a Buyer and a Seller Agree to Split the Cost

question 28

Multiple Choice

Suppose a buyer and a seller agree to split the cost of hiring an interpreter who charges $4 per transaction.The seller's opportunity cost is $35, while the buyer values the good at $45.If the gains from this transaction are split equally between the buyer and the seller, how much will each gain from this transaction?

• A)$10
• B)$4
• C)$3
• D)$5

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Definitions:

Life Expectancy

The average number of years individuals and particular groups can expect to live.

Infant Mortality

The death of a child under the age of one year, often measured as the infant mortality rate per thousand live births, indicating a society's health status.

Multinational Corporations

Corporations that conduct business across national borders.

Peripheral Nations

Countries that are not dominant in the global economy, often characterized by lower levels of industrialization, weaker institutions, and lower living standards compared to core nations.