Arbitrage makes it more difficult for firms to practice price discrimination.

Name: Arbitrage makes it more difficult for firms to practice price discrimination.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Arbitrage allows for the possibility of reselling goods or services at a lower price, negating the ability for firms to charge different prices to different groups of consumers (i.e. price discrimination). This makes it more difficult for firms to practice price discrimination.

Arbitrage Makes It More Difficult for Firms to Practice Price