Chapter 1 Includes a Cartoon Showing a Salesman Selling Refrigerators

question 3

Essay

Chapter 1 includes a cartoon showing a salesman selling refrigerators to Eskimos. What does this cartoon convey about selling?

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Definitions:

Opportunity Cost

The price paid for not choosing the next most favorable option when a decision is made.

Absolute Advantage

A situation in which a person or economy can produce more of a good with the same amount of resources as someone else.

Inputs

Resources such as labor, raw materials, and capital that are used in the production process to create goods or services.

Gain From Trade

The benefit obtained by countries, organizations, or individuals from engaging in exchange or trade.