According to the Law of One Price

question 159

Multiple Choice

According to the law of one price,

• A)if transaction costs are zero, identical goods should sell for the same price everywhere.
• B)if transactions costs are zero, firms must sell a product at a price equal to its marginal cost.
• C)if transactions costs are zero, all firms must earn the same profit margin.
• D)there must be no differences in the cost of producing identical goods by different producers.

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Definitions:

Libido

A term in psychoanalytic theory for the energy of the sexual drive as a component of the life instinct.

Genital Stage

In psychoanalytic theory, the final stage of psychosexual development, in which the physical focus of the libido is on the genitals, with an emphasis on heterosexual relationships. The stage begins at about puberty, but is only fully attained when and if the individual achieves psychological maturity.

Psychic Conflict

A struggle within the mind between opposing thoughts, desires, or impulses, often central to psychoanalytic theories.

Anticrime Initiatives

Actions or strategies implemented to reduce or prevent criminal activities and increase safety within a community.