A Person Buys X in One Market and Combines It

question 157

Multiple Choice

A person buys X in one market and combines it with Y purchased in another market. The combination of X and Y gives Z, which the person sells in a third market for a higher price than the sum of the prices of X and Y. Which theory of profit is most consistent with this example?

• A)Profit is the return to being alert to an arbitrage (broadly defined) opportunity.
• B)Uncertainty is the source of profit.
• C)Profit is the return to the entrepreneur as innovator.
• D)none of the above

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Definitions:

Neurotransmitter

Chemical substances in the brain that transmit signals across a synapse from one neuron to another, playing a key role in how brain cells communicate with each other.

Recreational Drugs

Recreational drugs are substances taken for pleasure rather than for medical reasons, often illegal or used outside of prescribed guidelines, and can alter consciousness, mood, or thoughts.

Medical Drugs

Substances used to diagnose, treat, or prevent disease and improve health and well-being.

Experiences

The knowledge or practical wisdom gained from what one has observed, encountered, or undergone.