Asked by
Jamisha Youtube
on Dec 12, 2024
Verified
In economics, transaction costs refer to the
A) time, effort, and other resources needed to search out and negotiate an exchange.
B) dollar cost or price of the item traded.
C) cost an economy suffers when it allows specialization according to comparative advantage.
D) amount by which the price of an item increases due to the presence of a middleman.
Transaction Costs
Expenses incurred when buying or selling goods and services, which may include search and information costs, bargaining costs, and enforcement costs.
- Understand the influence and consequences of transaction costs in determining the efficiency of markets and exchanges.
Verified Answer
HM
Learning Objectives
- Understand the influence and consequences of transaction costs in determining the efficiency of markets and exchanges.