Use the Information for the Question(s) Below

question 53

Multiple Choice

Use the information for the question(s) below. As an oil refiner, you are able to produce $77 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil. Because of its lower sulfur content, you can produce $78 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude.
Another oil refiner is offering to trade you of Alaska North Slope (ANS) crude oil for of West Texas Intermediate (WTI) crude oil. Assuming you currently have of WTI crude, the added benefit (cost) to you if you take the trade is closest to ________.

• A) ($1550)
• B) $1550
• C) ($3475)
• D) $3475

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Definitions:

Negotiation objectives

The specific goals or outcomes that a party aims to achieve through the negotiation process.

Strategizing

Formulating plans and strategies to achieve specific goals or overcome challenges.

Goal setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives.

Negotiations fail

Occurrences when discussions or talks break down without reaching an agreement, due to various reasons such as misunderstandings, lack of compromise, or conflicting interests.