Question

Alias Shipping negotiate the purchase of trucks with a supplier of delivery vehicles. Alias sets it's is reservation price at 1,750,000, 000. The supplier will not sell the vehicle for less than 2,250,000 what is the ZOPA?

Answer 1

There is no ZOPA.

Step-by-step explanation:

ZOPA here refers to the price range that is agreeable by parties to an ongoing deal, in which both negotiating parties feel satisfied.

Note that, it is possible for there to be no ZOPA when the lowest possible price by the seller is far greater than the price offered by the buyer.

In this case Alias Shipping the buyer has a reservation price that is very much lower than that of the seller thus leading to no ZOPA.