Net benefits of sellers represent their: A) revenue. B) ...

[ec501234]

Net benefits of sellers represent their:
 
  A) revenue.
  B) profits.
  C) sales.
  D) inventory.

Question 2

Elly needs to get her leaking faucet repaired as soon as possible. She gets in touch with a plumber who asks for an unreasonably high fee. If no other plumber is available for work, who has a higher bargaining power? Explain your answer.
 
  What will be an ideal response?

[xiaomengxian]

Answer to Question 1

B

Answer to Question 2

Bargaining power describes the relative power an individual has in negotiations with another individual. Two principlesthe cost of failing to come to an agreement and the influence of one partner on the otherare generally used to describe the bargaining power of each partner engaged in bargaining. If the influence of one agent over the other agent increases, then the former's bargaining power increases, but if the cost of not coming to an agreement increases, then his bargaining power goes down. In this case, the cost of failing to come to an agreement is high for Elly because no other plumber is available for work. Therefore, the plumber has a higher bargaining power.

[ec501234]

TYSM

[amynguyen1221]

Thanks for the timely response, appreciate it