Which of the following is most likely to increase transaction costs?
A) having many possible trading partners
B) investing in specific assets
C) operating in a stable environment
D) adopting a decentralized organizational structure

Question

Quizplus · Accepted Answer

Investing in specific assets increases the dependence on the trading partner, which can lead to increased transaction costs in terms of search costs, bargaining costs, and monitoring costs.

Which of the Following Is Most Likely to Increase Transaction