The zone of possible agreements (ZOPA)is the range between ________.
A) the buyer's and the seller's target points
B) the seller's target point and the buyer's reservation point
C) the buyer's and the seller's reservation points
D) the buyer's target point and the seller's reservation point

Question

Quizplus · Accepted Answer

The zone of possible agreement is the range between the buyer's and seller's reservation points. This is the range in which a mutually acceptable agreement can be reached. The buyer's reservation point is the lowest price they are willing to accept, while the seller's reservation point is the highest price they are willing to accept. The ZOPA is the range between these two points, and any agreement within this range is possible. Therefore, option C is the correct answer.

The Zone of Possible Agreements (ZOPA)is the Range Between ________