--%>

Purchasing low selling high

Purchasing low in one market and concurrently selling at a high price in another is NOT a mechanism which: (i) Rises supply in the low-price market. (ii) Risklessly produces profits. (iii) Is termed as arbitrage. (iv) Decreases price differentials among markets. (e) Increases demand in the low-price market.

Give the right answer of the above question.

   Related Questions in Microeconomics

  • Q : Example of a vertical merger An example

    An example of the vertical merger would be: (i) Merging the Oscar Myer hot dog Company with Wrangler Jeans Company and Aquafina Water Company. (ii) The log cabin architecture firm merging with the logging company and construction company. (iii) Merger between Wachovia

  • Q : Opponents of the current welfare system

    Opponents of the current welfare system who desire the welfare system scaled down tend to argue which this: (1) has constantly experienced funding cuts for the past decade. (2) cannot succeed in helping poor people within a market economy. (3) stimula

  • Q : Copyrights in legal barriers to entry

    Legal barriers to entry do NOT comprise: (1) outright governmental prohibition of entry. (2) protection of inventions by patent. (3) licensing and bonding restrictions. (4) substantial economies of scale. (5) copyrights for music, computer software an

  • Q : Short-run supply curve of the firm For

    For a competitive firm the short-run supply curve is the: (w) marginal cost curve which is above the average total cost curve. (x) marginal cost curve which is above the average variable cost curve. (y) upward sloping part of the marginal cost curve.

  • Q : Earn normal accounting profit in the

    When a purely competitive industry is into long run equilibrium, in that case a typical firm can: (w) earn normal accounting profit although only zero economic profit. (x) incur economic losses when these are offset by accounting prof

  • Q : Emerging natural monopoly A monopoly

    A monopoly will come out naturally when: (w) the government relaxes antitrust laws. (x) economies of scale are large relative to market demand. (y) variable costs are huge relative to fixed costs. (z) variable costs rise as output expands.

  • Q : Wage Differentials I have a problem in

    I have a problem in economics on Wage Differentials. Please help me in the following question. The major determinants of the wage differentials comprise: (1) General human capital needs. (2) Working conditions. (3) Occupational crowding (4) Specific h

  • Q : Reduce total revenue when demand is

    Boosting the price for Pixie’s cheesy fried grits by P2 to P3 will: (w) increases total revenue since demand within inelastic. (x) increase total revenue since demand is elastic. (y) reduce total revenue since demand is inelastic. (z) reduce total revenue since demand

  • Q : Problem on certainty of punishment

    Raising the severity and certainty of punishment decreases the cheating on examinations. This statement imitates: (1) Misplaced cynicism as this issue is ethical, not economic. (2) Purely normative views of the behavior. (3) Unrealistic expectations regarding student

  • Q : Normal accounting profits I have a

    I have a problem in economics on Normal accounting profits. Please help me in the following question. The normal accounting profits are considered by the economists to be: (i) Exploitation of the consumer. (ii) Evidence of monopoly power. (iii) Economic costs of the p