Which of the following is true of arbitrage?
A)It is the revenue from the sale of a used product.
B)It is the resale of a product among market segments.
C)It is the profit from initial sales of a product.
D)It is the ability of a firm to discriminate prices among customers.

Question

Quizplus · Accepted Answer

Arbitrage is the process of buying a product or asset in one market and then selling it in another market to take advantage of price discrepancies. In this case, it involves the resale of a product among different market segments. Option A is describing revenue from the sale of a used product, which is not necessarily related to arbitrage. Option C is describing the profit from initial sales, which is not related to arbitrage. Option D is describing price discrimination, which is also not related to arbitrage.

Which of the Following Is True of Arbitrage