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
A)subject to a retail profits tax.
B)not economic profits because Harvey did not add value to the items but took advantage of the buyers who were not aware of how much Harvey paid for the items.
C)the result of arbitrage.
D)accounting profits but not economic profits.

Question

Quizplus · Accepted Answer

Arbitrage involves buying items at a lower price and selling them at a higher price, which is what Harvey did by purchasing items at a flea market and reselling them on eBay for a profit.

Harvey Morris Bought Dishes and Pitchers Made of Blue Glass