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Mary Is an Assembly Line Worker at a Computer Company

question 45

Essay

Mary is an assembly line worker at a computer company.Mary becomes aware that an improvement is being made to the company's primary computer that will significantly increase profits.Mary tells a friend to buy stock in the company,but instructs her not to tell anyone else.The friend buys stock,but tells two other persons to do the same.The company's profits increase greatly,and all three who purchased stock sell at a tremendous profit.Discuss this situation.


Definitions:

Statutory Irrevocability

A legal provision or condition set by statute that cannot be revoked or undone by the parties involved once established.

Windfall Theory

Windfall theory suggests that unexpected, unearned, or sudden gains (windfalls) in wealth can have various effects on individuals’ behavior, the economy, or market dynamics.

Merchant

A person or company engaged in the wholesale or retail sale of goods or services.

Authorized Dealer

An entity or individual officially recognized and permitted by a manufacturer or government to sell or distribute specific products or services.

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