What terms refers to the process of taking advantage of different prices for a good in different markets?
A)arbitrage
B)absolute advantage
C)capitalism
D)the law of one price

Question

Quizplus · Accepted Answer

Arbitrage refers to the process of taking advantage of different prices for a good in different markets by buying low in one market and selling high in another market. This process occurs until the prices for the same good equalize across markets, known as the law of one price. Absolute advantage refers to a situation where one country can produce a good more efficiently than another country. Capitalism refers to an economic system based on private ownership and free markets. The law of one price refers to the idea that, in a competitive market, the same good should have the same price in different markets.

What Terms Refers to the Process of Taking Advantage of Different