A Butcher Can Produce Only Hamburgers, and a Farmer Can

question 56

Multiple Choice

A butcher can produce only hamburgers, and a farmer can produce only potato chips.The butcher and the farmer both like both foods.They:

• A)cannot gain from trade
• B)could gain from trade under certain circumstances, but not always
• C)could gain from trade because each would enjoy a greater variety of food
• D)could gain from trade only if each were indifferent between hamburgers and potato chips

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Definitions:

Parties Agree

A mutual understanding or concurrence between two or more parties regarding the terms of a contract or agreement.

Risk Of Loss

The liability for damage, loss, or destruction of goods assumed by a party in a contract.

Sales Contract

A legal agreement between a buyer and a seller which outlines the terms and conditions of the sale of goods or services.

Breaches

Instances where laws, contracts, or agreements are violated or broken.