Final answer:
The alliance between Atlantis and Hyrule would shift the bargaining power in favor of Atlantis, making the negotiations with Midgar more favorable for Atlantis.
Step-by-step explanation:
The alliance between Atlantis and Hyrule would change the bargaining interaction between Atlantis and Midgar in a couple of ways:
- A. Because of Hyrule's help in winning a likely war, the bargaining range shifts toward Atlantis' ideal outcome. This means that Atlantis would have a stronger position in the negotiations with Midgar, as they would have the support of a powerful ally.
- B. Because Atlantis would pay a smaller cost to go to war, the bargaining range shifts toward Atlantis' ideal outcome. With Hyrule's assistance, Atlantis would have a lower cost of going to war, giving them more leverage in the negotiations.
- C. The costs of a potential war for Midgar decrease. Although this option is not applicable in this scenario, it is worth noting that if Midgar were to form an alliance with another powerful state, the costs of going to war for Midgar would also decrease.
Overall, the alliance between Atlantis and Hyrule would shift the bargaining power in favor of Atlantis, making the negotiations with Midgar more favorable for Atlantis.