Terry Wants to Sell His Car and the Lowest Price

question 33

Multiple Choice

Terry wants to sell his car and the lowest price he is willing to accept is $3,000.Alice likes the car and is willing to pay at most $4,000 for it.They begin to negotiate to arrive at a price.Which of the following statements will be true?

• A)They are playing a zero-sum game.
• B)The higher the price they agree on, the greater the benefit to both.
• C)The longer they take to arrive at an agreed price, the lower the benefit to them.
• D)They are playing a positive-sum game where their benefits add up to $1,000.

---

Definitions:

Barriers to Entry

Restrictions or obstacles that prevent new competitors from easily entering an industry or area of business.

Unlimited Market Power

A hypothetical situation where a company or entity can set the market price for its product without any competitive constraint.

Monopolists

Entities that hold exclusive control over the production and sale of a particular good or service, eliminating competition in the marketplace.

Barriers to Entry

Barriers consisting of financial, bureaucratic, or legal hindrances that restrict the entry of new players into a market or business sector.