In a market characterized by many sellers, if an outsider devises a way to reduce transaction costs it will:
A)benefit both buyers and sellers.
B)cause both buyers and sellers to lose.
C)benefit the buyers but cause the sellers to lose.
D)benefit the sellers but cause the buyers to lose.

Question

Quizplus · Accepted Answer

When transaction costs are reduced, buyers and sellers can interact more easily, and the increased efficiency benefits both parties. As a result, both buyers and sellers would benefit from the reduction in transaction costs.

In a Market Characterized by Many Sellers, If an Outsider