Question

What forces are working to establish the law of one price? Group of answer choices competition...

What forces are working to establish the law of one price?

Group of answer choices

competition and the quest for profit

legal and political forces

monopoly and the drive for profit

social and cultural forces

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans. Option a

Competition ensures that the similar good is available with another seller also. So, if the price is different with the two sellers, the consumers quest for profit will make him buy that good from the seller who is selling at lower price and then selling it in the market where the seller is charging higher price. This will increase demand for the good in low price market increasing its price while demand for the good in higher price market will fall decreasing its price. So, eventually the markets will have the same price for the same good when all the profit making opportunities are exhausted

* Please don’t forget to hit the thumbs up button, if you find the answer helpful.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A legal barrier of monopoly refers to Group of answer choices a barrier to monopoly entry...
A legal barrier of monopoly refers to Group of answer choices a barrier to monopoly entry into an industry A law which makes entry of new businesses difficult limiting competition a barrier to monopoly practices a law that forbids monopoly
Which of the following does not characterize perfect competition? Group of answer choices there are so...
Which of the following does not characterize perfect competition? Group of answer choices there are so many firms no one firm has the ability to control the market economic profits cannot be earned in the long-run competitive firms are price makers competitive firms sell identical products
Which of the following is a drawback of Porter's five forces model? Group of answer choices...
Which of the following is a drawback of Porter's five forces model? Group of answer choices a. The model describes competition narrowly as a firm's closest competitors. b. Managers cannot determine the changing speed of an industry or the rate of innovation. c. It fails to provide a basis for deriving implications for a firm's strategic position within an industry. d. The model fails to consider that threat of substitutes can come from outside a given industry.
1 .For a natural monopoly, economies of scale are Group of answer choices unimportant when compared...
1 .For a natural monopoly, economies of scale are Group of answer choices unimportant when compared to the market quantity demanded large when compared to the market quantity demanded 2. In the context of the Organization of the Petroleum Exporting Countries (OPEC), Group of answer choices an agreement is in place for countries to operate like perfect competitors. agreements made are not legally enforceable. it is legal for U.S. companies to copy the cartel's behavior. one country can sue another...
1) Which of the following is NOT true about conjoint analysis? Group of answer choices a....
1) Which of the following is NOT true about conjoint analysis? Group of answer choices a. In a conjoint design, too many attributes may cause fatigue in the respondent and few attributes may not be comprehensive. b. A conjoint study process consists of three stages; the first stage is the designing the study, the second stage is obtaining data from respondents, and the third stage is evaluating product design options. c. Conjoint designs allow the customer to make trade-offs among...
Question 11 Monopolistic competition features a _____ number of competing firms selling products that are _____....
Question 11 Monopolistic competition features a _____ number of competing firms selling products that are _____. Group of answer choices large; identical small; identical large; differentiated small; differentiated Question 12 In market structures known as _____, a small number of firms dominate. Group of answer choices perfect competitions legal monopolies natural monopolies oligopolies Question 13 Comparing perceived demand curves, a perfect competitor has a _____ a monopolistic competitor. Group of answer choices flatter curve than lower price elasticity of demand...
In general, what is a price ceiling? Group of answer choices A price ceiling sets the...
In general, what is a price ceiling? Group of answer choices A price ceiling sets the maximum price at which a good can be legally sold. A price ceiling sets the minimum price at which a good can be legally sold. A price ceiling comes in the form of a minimum wage none of the above Flag this Question Question 21 pts In general, what is a price floor? Group of answer choices A price floor sets the maximum price...
The supply curve measures: Group of answer choices the minimum price that a buyer is willing...
The supply curve measures: Group of answer choices the minimum price that a buyer is willing to pay for one unit of a good the maximum price that a buyer is willing to pay for one unit of a good the minimum price that a seller is willing to accept in return for selling a unit of a good the maximum price that a seller is willing to accept in return for selling a unit of a good
According to the sticky-price model, one reason prices are sticky is Group of answer choices A)expectations...
According to the sticky-price model, one reason prices are sticky is Group of answer choices A)expectations are formed adaptively rather than rationally. B)some firms do not adjust their prices instantly to changes in demand. C)firms confuse changes in the overall level of prices with changes in relative prices. D)the real wage adjusts to bring labor supply and labor demand into equilibrium.
1.All of the following are general sources of federal tax law except: Group of answer choices...
1.All of the following are general sources of federal tax law except: Group of answer choices b. Treasury Department regulations d. tax treaties a. Revenue procedures c. court decisions 2. The main reason taxpayers bring their case to the Tax Court is: Group of answer choices a. taxpayers can be awarded attorney costs if they win d. taxpayers do not have to pay their tax deficiency first b. taxpayers can file their petitions to the court as late as one...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT