Which of the following is true of a distributive bargain?
A)A distributive bargain is a situation where the parties negotiate over the share of total profit.
B)A distributive bargain is a situation where total profits are distributed equally among the participating parties.
C)In a distributive bargain,the individual profits of the trading parties are maximized.
D)A distributive bargain is not possible in a bilateral monopoly.
E)A distributive bargain cannot lead to a socially efficient outcome.

Question

Quizplus · Accepted Answer

A distributive bargain is a negotiation over how to divide a fixed amount of resources and outcomes among the parties involved, such as negotiating over the share of total profit. It is a win-lose situation where one party's gain is the other party's loss.

Which of the Following Is True of a Distributive Bargain