Assuming Zero Transaction Cost, If Your Local Grocer Buys Oranges

question 246

Multiple Choice

Assuming zero transaction cost, if your local grocer buys oranges at a low price from an orchard and resells them to you at a higher price, then the grocer's revenue minus costs is known as

• A) arbitrage profits.
• B) transactions profits.
• C) pure profits.
• D) excess profits.

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Definitions:

Position Power

Refers to the authority and influence conferred by a person's role or position within an organization, enabling them to impact decisions and actions.

Disruptive Politics

Political actions or policies that significantly change the status quo, often leading to shifts in power structures or social norms.

Avoid Favoritism

The practice of deliberately not giving preferential treatment to particular individuals or groups over others, ensuring fairness and equality.

Organizational Resources

Assets, including human, financial, physical, and informational, that an organization possesses and can utilize to execute its strategies and achieve its objectives.