Final answer:
The condition that is not conducive for effective negotiation is when the supplier cannot determine risks and costs. Imperfect information in the market complicates price agreement due to uncertainty about product quality and therefore makes it difficult to reach market equilibrium.
Step-by-step explanation:
Among the choices provided in the question regarding the conditions under which negotiation is effective, the one that is not typically a condition for effective negotiation is: c) When the supplier cannot determine risks and costs. Effective negotiation requires awareness of risks and the ability to determine costs for the process to be constructive and for both parties to reach a mutually beneficial agreement. In addressing the review questions, dealing with imperfect information in the market can make it difficult for buyers and sellers to agree on a price. This is because imperfect information can lead to uncertainty regarding the quality of the product. If buyers are unable to ascertain the quality, they might be unwilling to pay higher prices for goods that sellers assert are of high or medium quality. Moreover, without the ability to effectively communicate quality, sellers might feel discouraged from participating in the market. For a market to reach equilibrium, complete information regarding a product's price and quality is necessary to allow sellers and buyers to make informed and optimal decisions. Imperfect information can result in inefficient market outcomes, where high-quality products might be undervalued or transactions do not occur at all due to uncertainty.