Arbitrage Is the Purchasing of a Good or Asset in One

question 2

True/False

Arbitrage is the purchasing of a good or asset in one market for immediate resale in another market in order to profit from a price discrepancy.

---

Definitions:

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales.

Selling Price

The amount of money a buyer pays to purchase a product or service.

Target Cost

The maximum amount that can be spent on developing a product or service, while still earning the desired profit margin.

Selling Price

Selling Price is the amount of money a buyer pays to purchase a product or service, which could include considerations for costs, profit margins, and market demand.