For both parties to gain from trade, the price at which they trade must lie between the two opportunity costs.

Name: For both parties to gain from trade, the price at which they trade must lie between the two opportunity costs.
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Question

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For trade to be mutually beneficial, the price at which goods are exchanged must be lower than the opportunity cost for the buyer and higher than the opportunity cost for the seller. This ensures both parties gain from the trade.

For Both Parties to Gain from Trade, the Price at Which