Suppose a Buyer Hires an Interpreter Who Charges $5 to Negotiate

question 7

Multiple Choice

Suppose a buyer hires an interpreter who charges $5 to negotiate a deal with a seller.The buyer's valuation of the good is $50 and the seller's opportunity cost is $35.If the net benefit to the buyer is equal to the same received by the seller, what is the price agreed upon by the two parties?

• A)$42
• B)$40
• C)$44
• D)$38

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Definitions:

Family Disruption

Events or situations causing significant change or interruption in the structure or functioning of a family unit.

Divorce

The legal dissolution of a marriage by a court or other competent body, terminating the marital union and resolving issues of alimony, child custody, and division of property.

Industrialization

The process of societal transformation from primarily agrarian and handicraft economies to those dominated by industry and machine manufacturing, significantly impacting social and economic structures.

Production

The process of creating goods or services through the combination of labor, materials, and technology.