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The lowest value acceptable to you for a negotiated agreement is determined by your

a. best alternative to a negotiated agreement (BATNA).
b. margin of error.
c. bid price.
d. asking price.

1 Answer

1 vote

Final answer:

The lowest value acceptable in a negotiated agreement is determined by the Best Alternative to a Negotiated Agreement (BATNA). It is the most advantageous course of action if no agreement is reached. Other considerations, like margin of error, bid price, and asking price do not directly define the minimal acceptable value like BATNA does.

Step-by-step explanation:

The lowest value acceptable to you for a negotiated agreement is determined by your best alternative to a negotiated agreement (BATNA). The BATNA represents the most advantageous alternative course of action a party can take if negotiations fail and an agreement can't be reached. Having a strong BATNA provides negotiators with greater power during negotiations, as they have better options outside of negotiations.

The other options, namely margin of error, bid price, and asking price, are also important considerations in negotiations, but they do not define the minimal acceptable value or the parties' bottom line as directly as the BATNA does. In practical terms, if the negotiation outcome isn't better than your BATNA, there would be no incentive to finalize the deal.

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User Cathrine
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