Elizabeth's opportunity cost of selling a widget is $18, while Jess values it at $27.Identify the correct statement from the following.

Question

Quizplus · Accepted Answer

The core of the zone of agreement refers to the range of prices that both parties find beneficial. In this scenario, the core would be between $18 (Elizabeth's opportunity cost) and $27 (Jess's value) since any price within that range would benefit both Elizabeth and Jess. Option A and D are not applicable since the question does not provide any information on whether there are other sellers in the market or if either party has any bargaining power. Option C is incorrect since any price above $27 would not be beneficial for Elizabeth since her opportunity cost is only $18.

Elizabeth's Opportunity Cost of Selling a Widget Is $18, While