Which of the Following Statements Is the MOST Accurate About

question 30

Multiple Choice

Which of the following statements is the MOST accurate about the Law of One Price on Scandinavian ferry lines?

• A) Due to menu costs, the Law of One Price does not hold.
• B) To avoid arbitrage opportunities, the Law of One Price must hold.
• C) Transaction costs of exchanging currency causes the Law of One Price to fail.
• D) Transportation costs between ferry lines leads to a violation of the Law of One Price.
• E) The physical distance allowed the Law of One Price to hold.

---

Definitions:

Similarity Principle

The similarity principle posits that individuals are more likely to form and maintain relationships with others who are similar to them in various aspects.

Complementarity Principle

A concept suggesting that relationships are strongest and most stable when partners possess traits that complement or enhance each other's abilities or characteristics.

Group Formation

The process by which individuals come together to form a group, often going through various stages of development such as forming, storming, norming, and performing.

Elaboration Principle

A concept in instructional design that emphasizes the importance of detailed and well-explained information to facilitate learning and understanding.