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david fabos david fabos
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4 years ago

Question 1.

According to the law of one price, identical products should sell for the same price everywhere if



▸

consumers have knowledge of the prices charged for products in different markets.



▸

firms can prevent consumers from engaging in arbitrage.



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there are no tariffs or other restrictions on imports or exports.



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transactions costs are zero.



Question 2.

Many people sell goods through eBay at prices that are higher than the prices they paid for these goods. Economists consider these transactions as



▸

unproductive since the goods sold have been produced in the past.



▸

examples of zero-sum games, since the value of the goods sold is exactly equal to the prices paid for them.



▸

examples of exploitation of buyers of the goods by the sellers.



▸

examples of arbitrage.

Textbook 
InMicro

InMicro


Edition: 1st
Authors:
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all is normal
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IsackIsack
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4 years ago
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david fabos Author
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4 years ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
carston
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Yesterday
Brilliant ツ
sweetalia
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2 hours ago
This helped my grade so much Perfect
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