Assume that Joe is willing to produce another hamburger that costs $1 to make. Mary is hungry and is willing to buy a hamburger for $3. According to the No Cash on the Table Principle, Joe and Mary:
A)will make a trade.
B)will only make a trade if Joe can get Mary to spend more than $3 for the hamburger.
C)will only make a trade if Mary can get Joe to charge less than $1 for the hamburger.
D)will never trade; they will look for better deals.

Question

Quizplus · Accepted Answer

The No Cash on the Table Principle states that if there is a price at which both the buyer and seller are willing to trade, then a trade will occur. In this case, Joe is willing to produce the hamburger for $1 and Mary is willing to buy it for $3, therefore they are able to make a trade.

Assume That Joe Is Willing to Produce Another Hamburger That