Which of the Following Best Explains Why You Cannot Use

question 25

Multiple Choice

Which of the following best explains why you cannot use the price of rolled oats at a local supermarket as the competitive market value of rolled oats?

• A) You can buy the oats at the price posted by the store, but the store will not buy oats from you for the same price.
• B) The posted prices of oats can vary widely between grocery stores, even within the same local area.
• C) Grocery stores mark up the prices of their oats up to make a profit.
• D) Grocery stores typically sell oats in different packaging, which results in different prices within the same store.

---

Definitions:

Buyer Surplus

The difference between the buyer’s value (what he is willing to pay) and the price (what he has to pay).

Seller Surplus

The difference between price (what the seller is able to sell for) and the seller’s value (what she is willing to sell for).

Individual's Value

The worth or significance of a person, often considered in terms of their qualities, actions, and contributions to society.

Willing

Displaying a readiness or preference towards a particular action or decision.