According to the Law of One Price

Multiple Choice

According to the law of one price,

A) if transaction costs are zero, identical goods should sell for the same price everywhere.
B) if transactions costs are zero, firms must sell a product at a price equal to its marginal cost.
C) if transactions costs are zero, all firms must earn the same profit margin.
D) there must be no differences in the cost of producing identical goods by different producers.