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Laila Buys a Spider -Man 3 Poster from Edward for $30

Question 3

Multiple Choice

Laila buys a Spider -Man 3 poster from Edward for $30 and resells it on eBay for $60. Which of the following statements is false?


A) It is possible that Edward has earned some producer surplus from this transaction.
B) The transaction has made Edward worse off because he undersold the poster.
C) Laila has probably incurred some costs in connection with this sale.
D) Laila has earned some arbitrage profits, assuming that transaction costs are negligible.

Correct Answer:

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