Which of the Following Statements Is TRUE Regarding Arbitrage

question 15

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.

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