Consumers of Google and Facebook services are disadvantaged because: Multiple Choice a. consumers do not have...
Consumers of Google and Facebook services are disadvantaged because:
Multiple Choice
a. consumers do not have accurate information to make decisions.
b. potential competitors are unable to develop new competing technologies.
c. consumers are given a service that is now free, but which will cost significant sums later.
d. the data Google and Facebook collect on users is a barrier to entry to new competition.
Homework Answers
Option (A).
Google and Facebook have information regarding consumers and their preferences, but consumers don't have access to complete information about the firms, which creates information asymmetry problem.
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