Author Question: What is the Law of One Price?[br][br][b][color=#165FFA]Question 2[/color][/b][br][br]When a firm's ... (Read 51 times)

LCritchfi · **on:** Jun 30, 2018

What is the Law of One Price?

Question 2

When a firm's average cost curve lies below its average revenue curve at the profit-maximizing level of output, it implies that the firm is suffering losses.
a. True
b. False
Indicate whether the statement is true or false

voltaire123 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Buying and selling a good simultaneously in two different venues, referred to as arbitrage, unifies a market and brings about a single equilibrium price or price differences that just cover the cost of transacting. This tendency is called the Law of One Price.

Answer to Question 2

False