xc30 asked: If 2 goods sold in 2 markets with demand curves q1=200-p1 and q2=300-3p2 and total costs are C= 20q + 0.5q^2 where q is total output if arbitrage is possible at no transportation cost, what is the optimal price and the quantities which sell in each market at the price?
Posts under ‘Economics’
1. Critically assess the role of the Arbitrage Pricing Theory (APT) in modern portfolio management?
emilysaffill asked: Any ideas yer freezemonkey i do i just dont sem to understande the question i get what apt is but not sure how its asking me 2 apply this to modern portfolio management or what modern portfolio management is? i mean is talking abourt Markowitz theory or does it just mean portfolio management [...]
When you really boil it down, aren’t the majority of profits via capitalism due to arbitrage?
thebourne_id asked: Think about it, lets say Store A sells a product for $25. They buy this product from Wholesaler B for $10 per. for a profit of $15, whereas the consumer cannot as Wholesaler B only deals with mass volume purchases to major retailers. Arguably the product is identical to the end recipient no [...]
what is the difference between arbitrage, speculation and scalping?
Be_happy! asked: i need to know if there is a difference or are they similar?!
No cost arbitrage vs costly arbitrage?
I_Heart_Economics asked: I’m having a very hard time understanding the two. Help?
Riskless transactions to take advantage of profit opportunities due to a price differential or a ?
Kim L asked: Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costs are called a. forward transactions. b. differential actions. c. arbitrage. d. cash transactions.
Isn’t arbitrage slightly underrated by EMH?
Riselux.com asked: OK, personally I think there is some truth in EMH and that you can’t predict the big financial markets. But, arbitrage seems a little bit underrated by EMH. I am not sure if Prof. Fama has stated this in his original thesis back in the 70s, but you will find many “official studies” [...]
Short-term interest rates are 2% in Japan and 4% in the United States. The current exchange rate is 120 yen pe
tessa asked: Short-term interest rates are 2% in Japan and 4% in the United States. The current exchange rate is 120 yen per dollar. If you enter into a forward exchange rate of 115 yen per dollar, how can you arbitrage the situation