Question

Suppose the price of​ regular-octane gasoline were cents per gallon higher in than in . Do you think there would be an opportunity for arbitrage​ (i.e., that firms could buy gas in and then sell it at a profit in ​)? Why or why​ not? If the price of gasoline were cents per gallon higher in than in ​, then A. there would not be an opportunity for arbitrage because both and are in the same country. B. there would be an opportunity for arbitrage because and represent the same geographical market. C. there would not be an opportunity for arbitrage because gasoline in is different than gasoline in . D. there would not be an opportunity for arbitrage due to transportation costs. E. there would be an opportunity for arbitrage because there would be no transaction costs.

Answer 1

Answer:

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