If a Lobster in Maine Costs $10 and That the Same

question 16

Multiple Choice

If a lobster in Maine costs $10 and that the same type of lobster in Massachusetts costs $30,then people could make a profit by

• A)buying lobsters in Maine and selling them in Massachusetts.This action would increase the price of lobster in Massachusetts.
• B)buying lobsters in Maine and selling them in Massachusetts.This action would decrease the price of lobster in Massachusetts.
• C)buying lobsters in Massachusetts and selling them in Maine.This action would increase the price of lobster in Massachusetts.
• D)buying lobsters in Massachusetts and selling them in Maine.This action would decrease the price of lobster in Massachusetts.

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Definitions:

Salary Allowances

Additional benefits or compensations given to employees over and above their regular salary, which could include housing, transportation, or medical allowances.

Net Income

The ultimate earnings of an enterprise once it has accounted for all expenditures and taxes against its total sales.

Liquidating Partnership

The process of dissolving a partnership by selling off assets, paying off liabilities, and distributing the remaining assets to partners.

Capital Accounts

Accounts that reflect the initial and subsequent contributions of owners or partners, along with their share of the net income or loss over time.