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Chrissie Owns a Vintage Guitar That She Values at $0

Question 1

Multiple Choice

Chrissie owns a vintage guitar that she values at $0.Mark would like to buy the guitar and values it at $1000.The negotiations are as follows.Chrissie suggests a price to Mark.If Mark agrees trade takes place at the agreed price.If Mark rejects the offer, Mark buys an identical guitar from Angus for a price of $400 and Chrissie receives a payoff of $0.What is the outcome of the negotiations?


A) Chrissie offers a price of $400 and Mark accepts.
B) Chrissie offers a price of $600 and Mark accepts.
C) Chrissie offers a price of $1000 and Mark accepts.
D) Chrissie offers a price of $0 and Mark accepts.
E) Chrissie offers a price of $500 and Mark rejects.

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