A person buys X in one market and combines it with Y purchased in another market. The combination of X and Y gives Z, which the person sells in a third market for a higher price than the sum of the prices of X and Y. Which theory of profit is most consistent with this example?
A) Profit is the return to being alert to an arbitrage (broadly defined) opportunity.
B) Uncertainty is the source of profit.
C) Profit is the return to the entrepreneur as innovator.
D) none of the above
Correct Answer:
Verified
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