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Suppose a Buyer Hires an Interpreter Who Charges $5 to Negotiate

Question 7

Multiple Choice

Suppose a buyer hires an interpreter who charges $5 to negotiate a deal with a seller.The buyer's valuation of the good is $50 and the seller's opportunity cost is $35.If the net benefit to the buyer is equal to the same received by the seller, what is the price agreed upon by the two parties?


A) $42
B) $40
C) $44
D) $38

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