One Would Expect More Arbitrage to Occur Between Two Markets

question 115

Multiple Choice

One would expect more arbitrage to occur between two markets if:

• A) the products are differentiated in terms of their fundamental characteristics.
• B) the products have built-in tracking mechanisms that enable the discovery of the distributors.
• C) the demand curves in the two markets are essentially the same.
• D) products are non-differentiated and the different markets have good transportation networks between them.

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Definitions:

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