Jack has one half of a $10,000 bill and Jill has the other half. By itself neither half is worth anything but together the two are worth $10,000. Which of the following is true?
A)Neither would ever offer less than $5,000 for the other half.
B)Neither is likely to accept an offer for much less than $5,000.
C)Neither would ever accept less than $5,000 for their half.
D)Each half is a specific input into the production of a $10,000 bill.

Question

Quizplus · Accepted Answer

Each half of the $10,000 bill is a specific input into the production of a complete $10,000 bill, which is valuable only when both halves are combined. The other options make assumptions about negotiation behavior that are not necessarily true in all situations.

Jack Has One Half of a $10,000 Bill and Jill