Blackley,Inc.is a company that produces gardening kits.It quotes a price of $200 per kit.A retailer offers to pay $175 and assures Blackley's that bulk orders would be given in the future.Blackley's decides to close the deal for $185 per kit along with a set of spare parts.Which of the following best defines the possible offer that Blackley's is willing to accept?

Question

Quizplus · Accepted Answer

A zone of possible agreements refers to the range of options that two parties can accept in a negotiation. In this scenario, Blackley's was initially offered $175 per kit, which was outside of their price range. However, the retailer's assurance of future bulk orders opened up a zone of possible agreements, allowing Blackley's to negotiate a price of $185 per kit, which was still within their acceptable range. The spare parts added to the deal also helped make it more attractive. Therefore, B, a zone of possible agreements, best defines the possible offer that Blackley's is willing to accept.