A state covets a piece of territory that is valued at $100 million,yet it costs the state $40 million to attain it through war.How much must its adversary need to offer to make a peaceful settlement preferable to war?
A)At least $60 million
B)More than $100 million
C)At least $40 million
D)Exactly $100 million

Question

Quizplus · Accepted Answer

The state values the territory at $100 million but would have to spend $40 million to acquire it through war, leaving a net value of $60 million. Therefore, an offer of at least $60 million would make a peaceful settlement preferable, as it would equal or exceed the net benefit of acquiring the territory through war without incurring the costs and risks associated with conflict.

A State Covets a Piece of Territory That Is Valued