In Voluntary Exchange, If the Seller of a Product Gains

question 194

Multiple Choice

In voluntary exchange, if the seller of a product gains,

• A) the buyer will generally lose an amount greater than the gain to the seller.
• B) the buyer must lose an amount equal to what the seller gains.
• C) someone else must lose an equal amount.
• D) the buyer must also gain; mutual gain provides the foundation for exchange.

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Definitions:

Patent

A government-granted exclusive right for an invention, giving the patent owner the right to exclude others from making, using, or selling the invention for a certain period.

Net Income

Net income is the total earnings of a company after subtracting all expenses, taxes, and losses, indicating the company's profitability during a specific time period.

Fair Value

The amount it would take to sell an asset or transfer a liability in a regulated deal between parties in the market at the time of evaluation.

Operating Income

Earnings from a company's core business operations, excluding deductions of interest and taxes.