Arbitrage occurs when a firm
A) offers a product at low prices through discount coupons and promotions.
B) sells a product at higher prices to make a profit from relatively fewer sales.
C) imports products from a manufacturer and distributes them directly through retail outlets.
D) purchases products in a country where prices are lower and resells them in a country where prices are higher.
E) prices its products at the least cost, risking losses, in order to grab market share.

Question

Quizplus · Accepted Answer

Arbitrage involves taking advantage of price differences in different markets, such as buying products in a country where they are cheaper and selling them in a country where they are more expensive.

Arbitrage Occurs When a Firm