Arbitrage
A)Is the act of to buying low in one market and selling high in another market
B)Can force a seller to go back to uniform pricing
C)Can offset the benefits of direct price discrimination
D)All of the above

Question

​Arbitrage
A)​Is the act of to buying low in one market and selling high in another market
B)Can force a seller to go back to uniform pricing
C)Can offset the benefits of direct price discrimination
D)​All of the above

Quizplus · Accepted Answer

Arbitrage involves buying low in one market and selling high in another market, thus taking advantage of the price difference. This can force sellers to go back to uniform pricing if the price difference becomes significant, and can also offset the benefits of direct price discrimination by making it harder for sellers to charge different prices in different markets. Therefore, all of the options (A, B, and C) are correct.

​Arbitrage

Arbitrage