Question

Paul is selling his car and refuses to sell it for less than $5,000. Jane is...

Paul is selling his car and refuses to sell it for less than $5,000. Jane is interested in purchasing the car and starts negotiating with Paul. She is unwilling to pay more than $4,500. What is the ZOPA (Zone of Possible Agreement) for this negotiation?

Business   Operations-Management   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

There are two negotiation zones of ZOPA. These zones are a negative bargaining zone and a positive barging zone. In the provided case, Paul is willing to sell his car at a price not less than $5,000. Jane wants to buy it but has only $4,500 to pay. In this case, ZOPA is a negative bargain zone. It is because both of the parties have different things to offer to each other. Paul has a car to sell but wants no less than $5,000 in return, Jane wants to buy it but has only $4,500 to pay. Hence, they both will walk away without having any deal because of a negative bargain zone.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Andy persuaded his grandmother Mabel to sell him her car for $1,000. Both parties knew that...
Andy persuaded his grandmother Mabel to sell him her car for $1,000. Both parties knew that the car was worth a lot more than that. Mabel didn’t need the car and wanted to help her only grandson so she agreed to sell. A week later she discovered that Andy was planning to sell the car to a friend for $7,000. What are her potential claims against Andy? Fraud. Misleading and deceptive conduct in terms of s9 of the Fair Trading...
31.a. Marcel, due to health problems, announced that he was selling his electronic equipment business. Paul,...
31.a. Marcel, due to health problems, announced that he was selling his electronic equipment business. Paul, knowing Marcel's business activities, sent him an offer to purchase for $ 450,000, of which $ 75,000 payable immediately, with the balance payable in installments over the next two years. Marcel immediately emailed Paul stating, “The price and all other terms seem fair, except I need a larger first payment - say $ 125,000. Tell me how much you can increase the first payment....
Many luxury sheets cost less than? $200 to make but sell for more than? $500 in...
Many luxury sheets cost less than? $200 to make but sell for more than? $500 in retail stores. Some cost even more dash– consumers pay almost? $3,000 for? Frett'e "Tangeri?Pizzo" king-size luxury linens. The creators of a new brand of luxury? linens, called Boll? & Branch, have entered this market. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. The sheets come in a luxurious box that can be...
Many luxury sheets cost less than? $200 to make but sell for more than? $500 in...
Many luxury sheets cost less than? $200 to make but sell for more than? $500 in retail stores. Some cost even more– consumers pay almost? $3,000 for? Frett'e "Tangeri? Pizzo" king-size luxury linens. The creators of a new brand of luxury? linens, called Boll? & Branch, have entered this market. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. The sheets come in a luxurious box that can be...
Many luxury sheets cost less than? $200 to make but sell for more than? $500 in...
Many luxury sheets cost less than? $200 to make but sell for more than? $500 in retail stores. Some cost even more consumers pay almost? $3,000 for? Frett'e "Tangeri?Pizzo" king-size luxury linens. The creators of a new brand of luxury? linens, called Boll? & Branch, have entered this market. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. The sheets come in a luxurious box that can be reused...
10. Scott takes $10,000 from his bank account to set up a small donut-shop business. He...
10. Scott takes $10,000 from his bank account to set up a small donut-shop business. He meets with an attorney, and finds out he can set up a sole proprietorship for under $100, but a corporation would cost over $500 ($175 to the state, about $400 to the attorney). He decides on a sole proprietorship. He signs a one-year lease, and starts his business. After six months of operations, he closes the business because of much-lower-than-expected sales. After using the...
1. Summarize in a few sentences what Ayers found about pricing strategies in car markets. 2....
1. Summarize in a few sentences what Ayers found about pricing strategies in car markets. 2. Do you think that this is a profit maximizing strategy? Do you think this is an appropriate and reasonable strategy for businesses to undertake it it increases their profits? 3. Can you think of other goods or services that could be - or are - priced the same way? Check out the article on discrimination in coffee shops "Waiting for Good Joe" for some...
The following article does a good job of breaking down the advantages/disadvantages of leasing vs. purchasing...
The following article does a good job of breaking down the advantages/disadvantages of leasing vs. purchasing vehicles: Title: Pros and Cons of Leasing vs. Buying a Vehicle Source: http://www.investopedia.com/articles/pf/05/042105.asp Buying a car can be overwhelming. In fact, the pleasure of getting a new car can be quickly clouded during the financing decision-making process and price negotiations. Besides price haggling, many car shoppers are plagued with the decision to leaseor buy. Which financing decision is right and why? This article will...
Below are the learning exercises for Lesson 6. What is required of you is to pick...
Below are the learning exercises for Lesson 6. What is required of you is to pick 5 of the following to talk about. Each one will require a 2 to 3 paragraph informational response. Lesson 6 Visit at least two different retailers. Determine whether each has a transition zone at the front of the store. Discuss the differences between the shopping experiences. Which one is more conducive to buying? Identify one B2C seller and one B2B seller. Describe at least...
Case Study: After a very successful career as a professional cyclist, James was forced to retire...
Case Study: After a very successful career as a professional cyclist, James was forced to retire after recovering from a major health scare. Even though his health was compromised, James’ passion for staying connected with the professional cycling community was still strong. So, he decided to establish BRU to leverage his professional cycling network as well as his firsthand knowledge of the deficiencies in existing bicycle technology. Along with his two long-time training partners, John and Marie, James established BRU....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT