An Example of a Nontradable Good Is

question 30

Multiple Choice

An example of a nontradable good is:

• A) a lead-painted toy from China.
• B) a stack of firewood from Montreal, Canada.
• C) a dish of handmade pasta in Lucca, Italy.
• D) All of these would be considered a nontradable good.

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Definitions:

Patents

Legal documents granted by the government that give an inventor exclusive rights to make, use, or sell an invention for a certain period of time.

Imitation

The act of copying or mimicking the strategies, products, or processes of individuals or enterprises, often seen as a way to gain a competitive advantage or innovate.

Fast-Second Strategy

A business approach where companies wait to see which innovations prove viable and then quickly follow with improvements and cost reductions.

Collusion

A situation in which firms act together and in agreement (collude) to fix prices, divide a market, or otherwise restrict competition.