Arbitrage usually makes it ______ for a firm to profitably engage in price discrimination.
A) easier
B) impossible
C) more difficult
D) unnecessary

Question

Quizplus · Accepted Answer

Arbitrage makes it more difficult for firms to engage in price discrimination because it allows consumers to buy a product at a lower price in one market and sell it in another market at a higher price, thus undermining the firm's ability to charge different prices to different consumers.

Arbitrage Usually Makes It ______ for a Firm to Profitably