You See on Kijiji That a Used XBOX One Sells

question 3

Multiple Choice

You see on Kijiji that a used XBOX One sells for $100 and a new XBOX One sells for $300.Is this an arbitrage opportunity?

• A)No.,because the market for a used XBOX One is not the same as the market for a new XBOX One.
• B)No,because the market for a used XBOX One is a competitive market.
• C)Yes,because the market for a used XBOX One is a competitive market.
• D)Yes,because the market for a used XBOX One is not the same as the market for a new XBOX One.
• E)No,because Kijiji is not a competitive market.