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If Both Parties Have Perfect Information About All Economic Facts

Question 35

Multiple Choice

If both parties have perfect information about all economic facts of the negotiation:


A) the parties should reach an efficient agreement.
B) the parties are sure to reach an equitable agreement.
C) any mutually-beneficial profit split can be supported as an efficient outcome.
D) a 50-50 profit split is the sole equilibrium outcome.
E) a price offered by one party is most likely to fall beyond the zone of agreement.

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