The Process of Buying a Good in One Market at a Low

question 66

Multiple Choice

The process of buying a good in one market at a low cost and selling the good in another market for a higher cost in order to profit from the price difference is known as:

• A)conspiracy
• B)sabotage
• C)collusion
• D)arbitrage

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Definitions:

Cost Structure

The relative proportion of fixed, variable, and mixed costs in an organization.

Break-even

The point at which total revenue equals total costs, resulting in no net loss or gain.

Selling Price

Selling Price is the amount of money charged for a product or service, determined by considering factors such as cost of production, market demand, and competition.

Operating Income

Income generated from the core operations of a business, excluding non-operating revenue and expenses.