What is true if the status quo agreement is at point a?
A)Any movement within the qba triangle is positive-sum.
B)Any movement along the line segment ab is zero-sum.
C)There are no possible agreements between the two actors.
D)Agreement within triangle qba is likely.
E)Actor A will improve its share by making an agreement that is closer to point b.

Question

What is true if the status quo agreement is at point a? 
A)Any movement within the qba triangle is positive-sum. 
B)Any movement along the line segment ab is zero-sum. 
C)There are no possible agreements between the two actors. 
D)Agreement within triangle qba is likely. 
E)Actor A will improve its share by making an agreement that is closer to point b.

Quizplus · Accepted Answer

If the status quo agreement is at point A, the qba triangle is formed by points Q, B, and A. Any movement within this triangle is positive-sum, so option A is incorrect. Similarly, there are possible agreements within this triangle, so option C is also incorrect. Option D is partially correct, as agreement within this triangle is likely, but it is not the only option. Option E is incorrect because actor A's share may not necessarily improve by moving closer to point B. However, option B is correct because any movement along the line segment AB (which includes point A as one of its endpoints) is zero-sum, meaning that one actor's gain is the other's loss.

What Is True If the Status Quo Agreement Is at Point