New Smartphone Applications Are Developed to Help Consumers Find the Cheapest

question 65

Multiple Choice

New smartphone applications are developed to help consumers find the cheapest prices in the neighborhood.Therefore,

• A)the local competitive will become more intensive.
• B)the prices of goods listed in the application will be lowered.
• C)price discrimination will occur against consumers without a smartphone or this application.
• D)All of the above.

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Definitions:

Capital Budgeting

The process of assessing and planning for a company's long-term investment opportunities and expenditures to ensure profitability and expansion.

Certainty Equivalent Approach

A method used in capital budgeting and investment theory that adjusts the future cash flows of investments for risk, making them equivalent to certain cash flows with no risk.

Risky Projects

Investments or ventures with a high degree of uncertainty, offering the potential for high returns or significant losses.

Cash Flow Estimates

A projection of how cash is expected to flow in and out of a business over a given period of time, helping in financial planning and analysis.