Sellers Can Make Typographical Errors When Listing Items on the Online

question 56

Multiple Choice

Sellers can make typographical errors when listing items on the online auction site eBay.These items often attract very few bidders.For example,someone listing a Nokia phone as a Nokya phone would have very few potential buyers sent to the incorrectly listed item by eBay's search engines.Some buyers look for items that are mislisted,buy them for a low price,then immediately list them for resale under the correct listing.Why does an arbitrage opportunity exist in this case?

• A)eBay's search engine makes it a fundamentally non-competitive market,since sellers do not have the same advantages as buyers.
• B)Buyers with a greater knowledge of the market than sellers can purchase goods for a discount.
• C)The same item can be bought and sold on what are essentially two different markets,a market of mislisted items where they sell low and a market of correctly listed items where they sell high.
• D)The items are,in effect,not equivalent,since the item listed incorrectly will sell,in general,for a lower price than the correctly listed item.
• E)Sellers deliberately change the spelling to avoid getting caught selling stolen goods.

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Definitions:

2-Chlorobutane

An organic compound consisting of a four-carbon chain (butane) with a chlorine atom substituted at the second carbon.

NaCN

Sodium cyanide is a chemical compound used in various industrial processes, including gold mining and organic synthesis.

Alkyl Halides

Organic compounds in which a halogen (F, Cl, Br, I) is bonded to an alkyl group.

Major Organic Product

The primary product formed in the highest amount from an organic chemical reaction.