Buying at a Low Price in One Market and Reselling

question 220

Multiple Choice

Buying at a low price in one market and reselling at a higher price in another market will

• A)not generate any profit because of transportation costs.
• B)not generate any profit because of transactions costs.
• C)eventually eliminate all of the price differences.
• D)eventually eliminate most, but not necessarily all, of the price differences.

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Definitions:

Fixation

Using a prior strategy and failing to look at a problem from a fresh new perspective.

Inductive Reasoning

Inductive reasoning is a method of reasoning in which specific observations or cases are used to form a general conclusion or theory.

Deductive Reasoning

An intellectual method where a deduction is made from the agreement of several assumptions, which are usually believed to be accurate.

Artificial Intelligence

The simulation of human intelligence processes by machines, especially computer systems, involving activities like learning, reasoning, and self-correction.