When obtaining information is costly, competition is
A) less effective at forcing prices down.
B) more effective at forcing prices down.
C) only effective at forcing prices up.
D) unable to affect price changes.

Question

Quizplus · Accepted Answer

When obtaining information is costly, competition is less effective at forcing prices down because consumers may not be aware of lower-priced alternatives, reducing the pressure on businesses to lower their prices to attract customers.

When Obtaining Information Is Costly, Competition Is