What Is Meant by the "Law of One Price

question 84

Multiple Choice

What is meant by the "law of one price"?

• A)Identical products should sell for the same price everywhere.
• B)A law was passed in 1913 that made it illegal to sell the same good or service to different people for different prices.
• C)This is a section of the Sherman Act that forced trusts (for example, the Standard Oil Company)to charge the same price for the same good or service in different states.
• D)Foreign companies should not be allowed to sell a product in the United States for prices different from prices these companies charge in other countries.

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Definitions:

Mud Statues

Refers specifically to figures crafted from earth materials like clay, often in a cultural or artistic context, but remains unrelated to economic jargon.

Total Cost

The complete expense incurred in the production of goods or services, including both fixed and variable costs.

Loan

Borrowed money that is expected to be paid back with interest.

Variable Cost

Expenses that vary directly with production output.