Post Utme Wellspring University 2024 Commerce Question 36

Practice objective / multiple choice question 36 from the 2024 Post Utme Wellspring University Commerce examination.

Post Utme Wellspring University 2024 Commerce Objective / Multiple Choice
Question 36 POST_UTME_WELLSPRING_UNIVERSITY • 2024 • COMMERCE • objective

In a perfectly competitive market, the law of one price dictates that the price of a commodity will be the same everywhere, ceteris paribus. However, in reality, prices may differ due to various factors such as transportation costs, taxes, and market conditions. Which of the following is a correct statement regarding the law of one price?

Answer Options

A. The law of one price is a fundamental concept in microeconomics that explains the relationship between supply and demand.
B. The law of one price is a market equilibrium concept that assumes perfect competition and homogeneous products.
Correct Answer C. The law of one price is a theory that explains why prices of identical goods may differ in different markets.
D. The law of one price is a concept that assumes that all firms have the same cost structure and produce homogeneous products.
Correct Answer
C
Correct Option:
The law of one price is a theory that explains why prices of identical goods may differ in different markets.

About This Question

This is Post Utme Wellspring University 2024 Commerce Question 36. It is one of the objective questions from the 2024 Post Utme Wellspring University Commerce examination.

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