Arbitrage pricing theory

Arbitrage pricing theory (APT) is a way of predicting how much something should cost by taking into account several different factors at once. For example, let's say you own a store and you want to know what price to set for a can of soda. With APT, you would look at the cost of buying the can of soda from the manufacturer, what similar stores in your area are charging for the same item, how much the same can of soda costs in other cities, what the industry standard for pricing soda is, and other things like inflation and the current economy. All of these factors together help you determine what the best price for the can of soda would be so you can make money from it.