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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