The Economic Value Which Can Be Created by a Transaction

Multiple Choice

The economic value which can be created by a transaction between two people, Ed (seller) and Luis (buyer) , is $50 as Ed's opportunity cost of selling is $135 and Luis' valuation of the good is $185.Suppose Ed and Luis do not speak the same language and Ed hires an interpreter who charges $2 per hour.Ed and Luis finally agree to a price of $160.This implies:

A) Luis' valuation of the good will increase.
B) Ed's opportunity cost will decline.
C) economic value from the transaction will decline.
D) Ed will receive to a lower benefit than Luis.