In Which of the Following Conditions Does Arbitrage Occur

question 8

Multiple Choice

In which of the following conditions does arbitrage occur?

• A)When a firm offers a product at low prices through discount coupons and promotions
• B)When a firm sells a product at higher prices to make a profit from relatively fewer sales
• C)When a firm imports products from a manufacturer and distributes them directly through retail outlets
• D)When a firm purchases products in a country where prices are lower and resells them in a country where prices are higher
• E)When a firm prices its products at the least cost,risking losses,in order to grab market share

---

Definitions:

Designer Labels

Designer Labels refer to brands, particularly in the fashion industry, that are recognized for their high-quality, exclusivity, and their designer's name, often associated with status and luxury.

Cultural Relativism

The principle of understanding other cultures on their own terms, rather than judging or evaluating according to one’s own culture.

Gestures

Movements of the body, especially hands and head, used to express feelings or convey information.

Sociological Term

A concept or phrase used within the field of sociology to define and explain behaviors, structures, and phenomena within human societies.