STATUS QUO A's SHARE B's SHARE A BARGAINING RANGE VALUE OF WAR TO A COSTS TO A COSTS TO B VALUE OF WAR TO B WAR OUTCOME In what area of this figure would the proposed new status quo need to be in order for it to be a possible outcome that both states agree upon? a t can be either to the left or the right of the cross hatched area marked "Bargaining Range b. It must be to the left of the dashed line marked "Status Quo" c. Anywhere in the crosshatched area marked "Bargaining Range"

Principles of Economics, 7th Edition (MindTap Course List)
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Author:N. Gregory Mankiw
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Chapter22: Frontiers Of Microeconomics
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STATUS QUO
A's SHARE
B's SHARE
BARGAINING RANGE
VALUE OF WAR TO A
COSTS TO A COSTS TO B
VALUE OF WAR TO B
WAR OUTCOME
In what area of this figure would the proposed new status quo need to be in order for it to be a possible outcome that both states agree upon?
a. It can be either to the left or the right of the cross hatched area marked "Bargaining Range
Ob.It must be to the left of the dashed line marked "Status Quo"
CC. Anywhere in the crosshatched area marked "Bargaining Range"
Transcribed Image Text:STATUS QUO A's SHARE B's SHARE BARGAINING RANGE VALUE OF WAR TO A COSTS TO A COSTS TO B VALUE OF WAR TO B WAR OUTCOME In what area of this figure would the proposed new status quo need to be in order for it to be a possible outcome that both states agree upon? a. It can be either to the left or the right of the cross hatched area marked "Bargaining Range Ob.It must be to the left of the dashed line marked "Status Quo" CC. Anywhere in the crosshatched area marked "Bargaining Range"
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