Often Trade Will Not Occur Because

question 71

Multiple Choice

Often trade will not occur because

• A)transaction costs are too high
• B)neither party has an opportunity cost
• C)the benefits to one party just equal the losses to the other party
• D)no one expects to gain from the trade
• E)the profits of the firm are excessive

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Definitions:

Ticket Scalpers

Individuals who purchase tickets to events at face value and then sell them at a higher price, typically without authorization, aiming to profit from the high demand.

Consumers

Individuals or entities that purchase goods or services for personal use rather than for manufacturing or resale.

Substitute

A good or service that can be used in place of another, offering consumers a choice when making purchase decisions.

Input

Resources used in the production process of goods or services, including labor, materials, and capital.