If the Transaction Between You and the Seller Takes Place

question 40

Multiple Choice

If the transaction between you and the seller takes place at a price that equals your valuation of the product, then:

• A)you realize all the gains from this transaction.
• B)the gains from this transaction are equally divided between the two of you.
• C)the entire economic value created by the transaction goes to the seller.
• D)the economic value created by this transaction is sub-optimal.

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Definitions:

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