Sellers Can Make Typographical Errors When Listing Items on the Online

question 56

Multiple Choice

Sellers can make typographical errors when listing items on the online auction site eBay.These items often attract very few bidders.For example,someone listing a Nokia phone as a Nokya phone would have very few potential buyers sent to the incorrectly listed item by eBay's search engines.Some buyers look for items that are mislisted,buy them for a low price,then immediately list them for resale under the correct listing.Why does an arbitrage opportunity exist in this case?

• A)eBay's search engine makes it a fundamentally non-competitive market,since sellers do not have the same advantages as buyers.
• B)Buyers with a greater knowledge of the market than sellers can purchase goods for a discount.
• C)The same item can be bought and sold on what are essentially two different markets,a market of mislisted items where they sell low and a market of correctly listed items where they sell high.
• D)The items are,in effect,not equivalent,since the item listed incorrectly will sell,in general,for a lower price than the correctly listed item.
• E)Sellers deliberately change the spelling to avoid getting caught selling stolen goods.

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Definitions:

Oogenesis

The process of egg cell formation in females, involving a series of stages that lead to the production of a mature egg cell or ovum.

Chromosomes

Structures within cells that contain DNA and carry genetic information necessary for reproduction and growth.

Mitotic Division

A process of cell division that results in two genetically identical daughter cells from a single parent cell.

Meiosis

A type of cell division that results in four daughter cells each with half the number of chromosomes of the parent cell, as in the production of gametes.