Suppose a buyer hires an interpreter who charges $5 to negotiate a deal with a seller.The buyer's valuation of the good is $50 and the seller's opportunity cost is $35.If the net benefit to the buyer is equal to the same received by the seller, what is the price agreed upon by the two parties?
A)$42
B)$40
C)$44
D)$38

Question

Quizplus · Accepted Answer

The Answer of Suppose a buyer hires an interpreter who charges $5 to negotiate a deal with a seller.The buyer's valuation of the good is $50 and the seller's opportunity cost is $35.If the net benefit to the buyer is equal to the same received by the seller, what is the price agreed upon by the two parties?
A)$42
B)$40
C)$44
D)$38

Suppose a Buyer Hires an Interpreter Who Charges $5 to Negotiate