A. A part of the reading that I found very interesting was the connection between the truck driver industry and the internet. It was fascinating because now logistics was so much easier and in the reading McMillan talked about how the truck drivers could now fill their trucks up with goods one way find some one who wanted them to transport goods back the other way and be back home without any lay over. The logistics made profits in companies increase very quickly and helped products that are perishables get delivered right on time.
B. Transaction costs talked about by McMillan is the price you pay to make the transaction happen. To clarify it includes everything from the price of researching and finding information to the cost of actually shopping through a store and buying the item you want. An example is buying a good quality hair cut versus an okay one for the same price. Finding information about reputations and then actually observing the hair cut for yourself is a transaction cost. The buyer has to trust that they are getting sold a decent product.
C. Effects like an imperfect market arise which then creates a very unstable economy. The effects of imperfect information are mostly on the sellers. They often times hinder the buyers decisions on what they are able to buy and for what price. The sellers has less information about the quality of what the person has to sell thus making the buyer at a disadvantage on whether they are getting a bad deal or not.
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