Use the following statements to answer the question: I. Consider the

Use the following statements to answer the question:

I. Consider the problem of negotiating the price of a rug that costs $100 to make. If there are two buyers (one with a maximum willingness-to-pay of $200 and one with a maximum willingness-to-pay of $250 ), then the situation is no longer a constant sum game.
II. The likely outcome from the game described in statement I is that the second buyer will bid a price slightly above $200 (e.g., $201 ) to win the rug.
A) I and II are true.
B) I is true and II is false.
C) II is true and I is false.
D) I and II are false.

ANSWER

C