Bill sells Mary a worthless coin that Bill incorrectly told Mary 'belonged to an ancient Persian king and is of enormous value to coin collectors'. Economists would call this an:
A) efficient exchange, assuming Bill was not intentionally trying to trick Mary
B) inefficient exchange because there were externalities involved
C) efficient exchange since any type of voluntary exchange promotes efficiency
D) inefficient exchange since at least one party used false market information
Correct Answer:
Verified
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