To Arbitrage a Price Difference Between Two Markets, You Should

question 8

Multiple Choice

To arbitrage a price difference between two markets, you should:

• A) sell in the low-price market and buy in the high-price market.
• B) buy in the low-price market and sell in the high-price market.
• C) sell in both markets to capture a lower average "market price."
• D) none of the above

Understand cost behavior in response to changes in production and sales levels.

Apply concepts of cost behavior to real-world situations.

Distinguish between variable costs and fixed costs based on their behavior.

Analyze and categorize costs as variable, fixed, or mixed.

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.