The Internet Has Made It Possible to Compare Lots of Prices

question 81

Multiple Choice

The Internet has made it possible to compare lots of prices without incurring a lot of cost.If Internet access is unequally distributed throughout the population one would expect

• A) consumers with Internet access to pay a higher price.
• B) consumers without Internet access to pay a lower price.
• C) price discrimination against consumers without Internet access.
• D) firms to charge the same price to all consumers.

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Definitions:

Overpriced Securities

Financial instruments that are valued higher in the market than their intrinsic worth, often due to speculative activities.

Negative Alphas

A situation where an investment's return is less than the return predicted by its associated risk (alpha less than 0).