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10 You discover that a bundle of toothbrush and toothpaste costs $5 at Company A. At Company B, the same toothbrush on its own costs
10 You discover that a bundle of toothbrush and toothpaste costs $5 at Company A. At Company B, the same toothbrush on its own costs $2, and the same toothpaste on its own costs $4. Which of the following is incorrect? 1 point In theory, there is an arbitrage: you can buy the bundle at Company A, separate the two items and sell them individually at Company B. In practice, there is no arbitrage because Company B is not in the business of buying toothbrushes and toothpaste from you. In practice, there is no arbitrage because you lose money buying individually for $6(=$2+$4) at Company B and trying to sell the bundle for $5 at Company A. All of the above
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