Your Neighbor Has Knowledge of Economics and You Would Like

question 96

Multiple Choice

Your neighbor has knowledge of economics and you would like her to share it with you.You own a car,a CD player and a new pair of running shoes.You wish to make a trade,but the neighbor does not want what you have.The problem can be stated as follows: You are not satisfying the

• A) rule of transaction costs.
• B) double coincidence of wants.
• C) law of marketability.
• D) terms of a common denominator.

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Definitions:

Profit-Maximizes

The method or approach of modifying production and pricing to secure the maximum achievable profit.

Barriers To Entry

Obstacles that make it difficult for new competitors to enter a market, protecting existing firms from new entrants.

Scarce Resource

A resource with limited availability in comparison to the desired use which exceeds its supply in an economic environment.

Technological Superiority

Having more advanced and efficient technology compared to competitors, often leading to a competitive advantage.