Some Internet companies like Amazon reduce the transaction costs of many purchases by
A) providing misleading information about the quality of products.
B) providing information about products and firms that supply those products.
C) advertising sales at local discount stores.
D) paying its employees low wages.

Question

Quizplus · Accepted Answer

Amazon is reducing the transaction costs by providing information about products and the firms that supply those products. By doing this, customers can easily compare prices and quality of products without the need to physically visit different stores, hence reducing the time and effort needed to complete the transaction. This also promotes competition among suppliers, which can further drive down prices for customers. The other choices (A, C, and D) are not relevant to reducing transaction costs.

Some Internet Companies Like Amazon Reduce the Transaction Costs of Many