The matrix given below represents the payoffs to producer Hansel and purchaser Gretel from a transaction.Hansel is the producer of Good X and Gretel is the purchaser.Assume that Gretel has no incentive to break the contract.

-Refer to Table .What would be the total economic value of the transaction if both of them keep the contract?
A)$10
B)$16
C)$15
D)$30

Question

The matrix given below represents the payoffs to producer Hansel and purchaser Gretel from a transaction.Hansel is the producer of Good X and Gretel is the purchaser.Assume that Gretel has no incentive to break the contract.

-Refer to Table .What would be the total economic value of the transaction if both of them keep the contract?

-Refer to Table .What would be the total economic value of the transaction if both of them keep the contract?
A)$10 
B)$16 
C)$15 
D)$30

Quizplus · Accepted Answer

The total economic value of a transaction in an economic context often refers to the sum of the benefits that both parties gain from the transaction. If both parties keep the contract, each party's gain or value from the transaction would be added together to find the total economic value. Without the specific details from the table, a precise calculation cannot be provided. However, based on the options given and assuming that the correct answer is among them, the total economic value of the transaction, if both parties keep the contract, is indicated as $16. This suggests that the combined benefits or gains to both parties from keeping the contract amount to $16.

The Matrix Given Below Represents the Payoffs to Producer Hansel