Which of the following is a result of competition among brokerage firms?
A) Many full-service firms have lowered their commissions, while many discount brokers have begun offering investment advice and other services.
B) Most full-service firms do not charge fees for the services they provide, while most discount brokerage firms charge commissions based on the dollar value of the orders their clients place.
C) The commissions and fees charged by discount brokers are usually significantly higher, while full-service brokers charge flat fees of a few dollars per trade for simple transactions.
D) Discount brokers provide a wide range of services-such as research to identify good investment opportunities, financial planning, and tax advice, while full-service brokers buy and sell securities for their clients but offer few additional services.
Question 2
The right to choose means that consumers must have a choice of products offered by different manufacturers and sellers.
Indicate whether the statement is true or false
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Competitive firms and maximization