In brokered markets, all the choices mentioned are true. Brokers charge a commission which is lower than the cost of direct search. They bring buyers and sellers together in exchange for a transaction fee, and build a pool of price information through their extensive contacts.

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In Brokered Markets

Question 55

Multiple Choice

In brokered markets:

A) the commission charged by brokers is a lower cost to buyers and sellers than the cost of direct search.
B) buyers and sellers are brought together for a transaction fee.
C) brokers build a pool of price information through their extensive contacts.
D) All of the above are true of broker markets.

Correct Answer: