For exchange to be voluntary the price must be greater than the marginal opportunity cost of the seller and less than the marginal benefit of the buyer.

Question

Quizplus · Accepted Answer

This is the basic principle of voluntary exchange in a market economy. If the price is too low, the seller will not be willing to sell, and if the price is too high, the buyer will not be willing to buy. The optimal price is where both parties can benefit from the exchange.

For Exchange to Be Voluntary the Price Must Be Greater