Bertrand’s Law
the Law of Universal Prices
the Law of One Price
the Law of Perfect Commerce
✅ The correct answer is C.
Complete price transparency in a perfect information marketplace is necessary for the Law of One Price to take effect. The law of one price states that in the absence of trade frictions, and under conditions of free competition and price flexibility, identical goods sold in different locations must sell for the same price when prices are expressed in a common currency.
Complete price transparency in a perfect information marketplace is necessary for the Law of One Price to take effect. The law of one price states that in the absence of trade frictions, and under conditions of free competition and price flexibility, identical goods sold in different locations must sell for the same price when prices are expressed in a common currency.