Harvey Morris bought dishes and pitchers made of blue glass during the Great Depression at a flea market. He later resold these items on eBay. The profits Harvey earned from these sales are

Question

Quizplus · Accepted Answer

The profits Harvey earned from reselling the blue glass items on eBay are the result of arbitrage, which is the act of buying an asset at a low price in one market and selling it at a higher price in another market. Although Harvey did not add value to the items, he was able to take advantage of the price discrepancy between the flea market and the online marketplace. The profits may be subject to taxes and may represent accounting profits, but it cannot be determined whether they are economic profits without additional information.

Harvey Morris Bought Dishes and Pitchers Made of Blue Glass