1. Distributive Bargaining. ( 50 points.) Enshi Elevator Corp. has asked your established, respected firm, Hainan Parts about selling 1000 cables for its elevators. You are under pressure in a competitive industry to get a high price to keep profits from falling. You know this is probably a one-time purchase; you will probably not be able to get more business later from Enping. Enshi's executives focus on price and don't want to hear about other options. If you get a price less than 2000 your boss will not accept it because at that price it's more profitable to make something else. A very good magazine that reports on your industry says competitors do not get more than 2,400 for similar cables. Friends who know a lot about your industry agree it is true. They also say sometimes your competitors get as a price as low as 1,600. Enshi, a reliable, profitable firm, probably wants a low price- the buyer strongly hints she wants to pay 1,400. Please answer each of the following questions. (a) What is the best target price you will seek? Just state the number, using the principles we discussed in the lecture on 'how much should you seek?'. You do not need to explain the answer. (b) What is your walkaway price? Just state the number using the principles we discussed in the lecture on 'when do you walkaway?' You do not need to explain the answer. (c) Should you make the first offer? Please say yes or no, and explain why in one sentence. Be sure to use a concept we talked about in our lecture on 'should you make the first offer?' 1. Distributive Bargaining. ( 50 points.) Enshi Elevator Corp. has asked your established, respected firm, Hainan Parts about selling 1000 cables for its elevators. You are under pressure in a competitive industry to get a high price to keep profits from falling. You know this is probably a one-time purchase; you will probably not be able to get more business later from Enping. Enshi's executives focus on price and don't want to hear about other options. If you get a price less than 2000 your boss will not accept it because at that price it's more profitable to make something else. A very good magazine that reports on your industry says competitors do not get more than 2,400 for similar cables. Friends who know a lot about your industry agree it is true. They also say sometimes your competitors get as a price as low as 1,600. Enshi, a reliable, profitable firm, probably wants a low price- the buyer strongly hints she wants to pay 1,400. Please answer each of the following questions. (a) What is the best target price you will seek? Just state the number, using the principles we discussed in the lecture on 'how much should you seek?'. You do not need to explain the answer. (b) What is your walkaway price? Just state the number using the principles we discussed in the lecture on 'when do you walkaway?' You do not need to explain the answer. (c) Should you make the first offer? Please say yes or no, and explain why in one sentence. Be sure to use a concept we talked about in our lecture on 'should you make the first offer