According to the law of one price, identical products should sell for the same price everywhere if
A)consumers have knowledge of the prices charged for products in different markets.
B)transactions costs are zero.
C)firms can prevent consumers from engaging in arbitrage.
D)there are no tariffs or other restrictions on imports or exports.

Question

Quizplus · Accepted Answer

The law of one price holds when there are no transaction costs, allowing for free movement of goods and arbitrage opportunities to equalize prices across markets.

According to the Law of One Price, Identical Products Should