Which of the following is based on the idea of complete price transparency in a perfect information marketplace?
A) the Law of One Price
B) dynamic pricing
C) price discrimination
D) versioning

Question

Quizplus · Accepted Answer

The Law of One Price is based on the concept of complete price transparency in a perfect information marketplace, where identical goods should have the same price in different markets. This assumes that all buyers and sellers have complete information and can make rational decisions, and that there are no transaction costs or barriers to entry. Therefore, the price of a good should be the same across locations, with any differences attributable to transportation, taxes, or other factors that affect the cost of production and distribution. Dynamic pricing, price discrimination, and versioning all do not require complete price transparency, but rather focus on adjusting prices based on customer behavior or personalization.

Which of the Following Is Based on the Idea of Complete