Market making involves bringing together buyers and sellers and transferring goods from low value to high value uses, which creates wealth. However, if transaction costs are too high, market making cannot occur and value-creating transactions will not happen. Therefore, all of the above options are correct.

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"Market Making

Question 63

Multiple Choice

"Market making"

A) is the action of bringing together high value buyers and low value sellers
B) transfers goods from their low value uses to high value uses,creating wealth
C) can not occur if the transaction costs are too high to prevent value creating transactions
D) all of the above

Correct Answer: