A voluntary exchange of products means that

Question

Quizplus · Accepted Answer

A voluntary exchange of products means that both parties enter into the transaction willingly, with the expectation of gaining something of value. Each party is looking to improve their own situation, which could include gaining a product they need or want, increasing their profits, or achieving other benefits. Therefore, both parties should gain (or at least expect to gain) from the transaction. Option A and B are incorrect as they reflect a zero-sum game or competitive advantage, which is not the essence of voluntary exchange. Option D is incorrect as transaction costs should be considered in addition to the benefits gained by the transaction.

A Voluntary Exchange of Products Means That