The publication Car and Driver reduces transactions costs for high-performance car buyers
Part 2
A.
by providing reliable information so that car buyers do not have to spend as much time doing their own research.
B.
by lobbying car makers to hold the line on prices.
C.
by offering dollars-off coupons to subscribers.
D.
by advertising sales at discount dealerships.
A. by providing reliable information so that car buyers do not have to spend as much time doing their own research.
The correct answer is A. Car and Driver reduces transaction costs for high-performance car buyers by providing reliable information so that they do not have to spend as much time doing their own research.
Explanation:
To determine the correct answer, we need to understand what transaction costs and how Car and Driver reduces them for high-performance car buyers.
Transaction costs refer to the costs involved in completing a transaction, which may include the time, effort, and resources required to gather information, negotiate, and make a decision. In the context of high-performance car buyers, transaction costs can be significant due to the complexities and nuances involved in purchasing such vehicles.
Option A states that Car and Driver reduces transaction costs by providing reliable information. This means that the publication offers valuable and trustworthy insights, reviews, comparisons, and advice on high-performance cars. By accessing this information, car buyers can make more informed decisions without having to spend excessive time and effort researching on their own. This reduces their transaction costs by saving them time and potentially avoiding costly mistakes.
Options B, C, and D, on the other hand, do not directly address the reduction of transaction costs but rather focus on different strategies. Lobbying car makers to hold the line on prices (option B) may help in keeping prices stable, but it does not directly reduce transaction costs for the buyers. Offering dollars-off coupons to subscribers (option C) and advertising sales at discount dealerships (option D) might provide financial benefits to the buyers but do not necessarily reduce transaction costs in terms of time and effort spent on research.
Therefore, option A is the most appropriate choice as it directly addresses the reduction of transaction costs by providing reliable information, aligning with Car and Driver's role as a reputable automotive publication.