When it comes to fees, micro-investing apps are beneficial because:

• A. They eliminate all transaction costs, making investing completely free.
• B. They always guarantee higher returns than traditional investment platforms.
• C. They often charge lower fees, increasing consumer surplus for small investors.
• D. They require large minimum investments, reducing accessibility for most consumers.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of fees in micro-investing apps. Fees are the costs charged by investment platforms for managing or facilitating investments.
2. Step 2: Recognize that micro-investing apps are designed to make investing accessible to small investors by often charging lower fees compared to traditional platforms.
3. Step 3: Analyze the impact of lower fees on consumer surplus. Lower fees mean investors keep more of their returns, which increases consumer surplus, especially for small investors.
4. Step 4: Evaluate the incorrect options: eliminating all transaction costs is unrealistic, guaranteeing higher returns is not assured, and requiring large minimum investments contradicts the purpose of micro-investing apps.
5. Step 5: Conclude that the correct benefit of micro-investing apps regarding fees is that they often charge lower fees, which increases consumer surplus for small investors.