Beanie Wishes to Purchase Cecil's House

Multiple Choice

Beanie wishes to purchase Cecil's house. The most that Beanie is willing to pay is $300,000. The least that Cecil is willing to accept is $250,000. Suppose that any failure to reach an agreement reduces Beanie's gain by 3 percent and reduces Cecil's gain by 7 percent. If there is no limit to the number of bargaining rounds, how much should Beanie offer for the house?

A) An amount between $292,300 and $292,400.
B) An amount between $284,600 and $284,700
C) An amount between $271,300 and $271,400
D) An amount between $265,300 and $265,400
E) An amount between $256,700 and $256,800