It Is March and Ozzie Wants to Purchase Harriet's Season

Multiple Choice

It is March and Ozzie wants to purchase Harriet's season tickets to Boston Red Sox games. Ozzie is a member of "Red Sox Nation" and can hardly wait to get his hands on Harriet's season tickets. Ozzie is willing to pay up to $4,000. Failure to come to an agreement will reduce Ozzie's gain by 80 percent. Although Harriet likes baseball, she would rather go to the movies. The season tickets were a gift from here good-for-nothing son-in law. Be that as it may, the minimum amount that Harriet will accept for the tickets is $3,000. Failure to come to an agreement will reduce Harriet's gain by 5 percent. If there is no limit on the number of bargaining rounds, how much should Ozzie offer Harriet?

A) An amount between $3,950 and $4,000
B) An amount between $3,600 and $3,650
C) An amount between $3,575 and $3,625
D) An amount between $3,525 and $3,575
E) An amount between $3,400 and $3,450