How many absolute prices would there be

Reference no: EM132130729

Question: 1. How many ratios of exchange would an individual have to cope with in a barter economy with 276 different items available for exchange?

2. How many absolute prices would there be if one of the items available for exchange were used as a generally acceptable medium of exchange?

3. Explain how the use of money as a unit of account can help reduce transaction costs in this economy.

Reference no: EM132130729

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