Arbitrage refers to:
A)the activity of a referee.
B)the ability to buy a good in a low- price market and resell it in a high- price market.
C)certain activities undertaken by firms.
D)the strategy developed by a monopolist engaged in ordinary price discrimination in order to increase its profits.

Question

Quizplus · Accepted Answer

Arbitrage refers to the process of buying a good in a low-priced market and reselling it in a high-priced market, thereby making a profit from the difference in price. This process helps to ensure that prices remain consistent across markets and that there are no opportunities for individuals or firms to exploit price differences for personal gain.

Arbitrage Refers To