Assume that Joe is willing to produce a hamburger for $1, and Mary is willing to pay $3 for a hamburger. Which of the following is true?

A. Joe and Mary cannot make a mutually beneficial exchange.
B. Joe and Mary will only trade if the equilibrium price is less than $1.
C. Joe and Mary can make a mutually beneficial exchange.
D. Joe and Mary will not trade in equilibrium.


Answer: C

Economics

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