A Person Buys X in One Market and Combines It

question 120

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)There is not enough information provided to answer this question.

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Definitions:

Organizational Performance

A measure of how effectively and efficiently an organization achieves its goals and objectives.

Leader-follower Communication

The exchange of information and ideas between those in leadership positions and their followers, crucial for effective leadership and team cohesion.

Servant Leader Factors

The characteristics or qualities that define a servant leader, including listening, empathy, stewardship, and the commitment to the growth of people.

Building Community

Building Community focuses on creating a sense of belonging and support among individuals within a group, organization, or area.