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PPF - The Price of the Trade
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Problem 9
PPF - The Price of the Trade
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2. Introductory Economic Models / PPF - The Price of the Trade / Problem 2
Problem 2
What role does negotiation power play in determining the terms of trade?
A
It can shift the price of trade in favor of the stronger negotiator.
B
It sets the price of trade equal to the average opportunity cost.
C
It ensures the price of trade is equitable for both parties.
D
It has no impact on the terms of trade.
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