Multiple Choice
Which of the following statements is TRUE regarding arbitrage?
A) It is easier to prevent arbitrage for some products than for others.
B) The U.S. Constitution prevents the government from engaging in arbitrage prevention.
C) Arbitrage may increase the profits for firms, depending on the elasticity of demand in the market.
D) Firms will still be able to price discriminate across markets even when arbitrage is present.
Correct Answer:
Verified
Correct Answer:
Verified
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