The Process of Buying a Good in One Market at a Low

question 188

Multiple Choice

The process of buying a good in one market at a low price and selling the good in another market for a higher price in order to profit from the price difference is known as

• A)sabotage.
• B)conspiracy.
• C)arbitrage.
• D)collusion.

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Definitions:

Large Market

A significant and extensive segment of the economy with a large number of consumers or businesses that demand goods and services.

Different Segments

Refers to the various distinct groups within a market, each with its own specific needs, preferences, and characteristics.

Cost Focus Strategy

A generic business strategy that involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of market segments.

Cost Leadership Strategy

A business approach aiming to become the lowest cost producer in an industry to offer products or services at competitive prices.