The Internet Has Made It Possible to Compare Lots of Prices

question 65

Multiple Choice

The Internet has made it possible to compare lots of prices without incurring a lot of cost.This

• A) has given firms added market power to price discriminate.
• B) has significantly reduced search cost and made markets more competitive.
• C) has enabled firms to charge higher prices to consumers with computers.
• D) has only affected technology markets.

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Definitions:

Annual Payments

Periodic payments made once every year, often used in terms of loans, insurance, and investments.

Outstanding Balance

The amount of money owed on a loan or credit line that has not yet been repaid.

Single Premium Annuity

A financial product where a lump sum payment is made initially in exchange for a series of payments that will be received at future dates.

Expected Rate

Anticipated return or yield on an investment or financial instrument, often based on historical data or statistical analysis.