Law of one price is an economic principle that states that a good or service cannot sell for different prices in the same market.

Question

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The law of one price is based on the assumption of an efficient market where there are no trading barriers or transaction costs. In such a market, a good or service should sell for the same price regardless of its producer or location due to arbitrage opportunities. Therefore, if a good or service is sold for different prices in the same market, there must be some market inefficiencies or factors such as transportation costs or branding that justify the price differences.

Law of One Price Is an Economic Principle That States