New smartphone applications are developed to help consumers find the cheapest prices in the neighborhood.As a result,
A)firms get greater market power.
B)consumers' search costs are greatly lowered.
C)firms are able to charge higher prices.
D)only smart markets become more competitive.

Question

Quizplus · Accepted Answer

The development of smartphone applications that help consumers find the cheapest prices in the neighborhood lowers consumers' search costs, making it easier for them to find the best deals. This increased transparency and accessibility in pricing can ultimately lead to more competition in the market, as firms strive to offer the most competitive prices to attract customers. This makes it less likely for firms to be able to charge higher prices or gain greater market power.

New Smartphone Applications Are Developed to Help Consumers Find the Cheapest