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:

Multiple Choice Questions

Questions that offer respondents a list of possible answers, from which they must choose the one correct answer.

Correct Choice

The option or answer that is accurate or true in the context of a given situation, inquiry, or problem.

Binomial Experiment

An experiment that satisfies four conditions: fixed number of trials, each trial is independent, there are only two outcomes, and the probability of success is constant for each trial.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the data points are from the mean.