Which of the following does not contribute to the failure of the law of one price?
A) Tariffs
B) Transportation costs
C) Technical specifications
D) Tastes are similar across countries

Question

Quizplus · Accepted Answer

Tastes being similar across countries will contribute to the law of one price being upheld, as consumers in different countries will seek out and pay similar prices for the same product based on their similar preferences. Tariffs, transportation costs, and technical specifications can all create barriers to the free flow of goods and services and can prevent the law of one price from being fully realized.

Which of the Following Does Not Contribute to the Failure