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Author Question: You are watching TV late one night and see an ad from Ronco for the Dial-o-matic food slicer. You ... (Read 62 times)

jCorn1234

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You are watching TV late one night and see an ad from Ronco for the Dial-o-matic food slicer.  You learn that the Dial-o-matic sells for $29.95.  But wait, there's more!  Ronco is also including in this deal a set of Ginsu steak knives worth $10.95 and another free gift worth $7.95.  Assuming that there is a competitive market for Ronco items, at what price must Ronco be selling this three item Dial-o-matic deal to insure the absence of an arbitrage opportunity and uphold the Law of One Price?


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Marked as best answer by jCorn1234 on Jul 9, 2019

Danny Ewald

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jCorn1234

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Reply 2 on: Jul 9, 2019
Excellent


scottmt

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Reply 3 on: Yesterday
Gracias!

 

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