Transaction costs include all of the following costs, except
A) search costs.
B) negotiating costs.
C) monitoring costs.
D) agency costs.

Question

Quizplus · Accepted Answer

Agency costs are not considered a part of transaction costs. Transaction costs refer to the costs associated with making an economic exchange, including search, negotiating, and monitoring costs. Agency costs, however, relate to the costs arising from conflicts of interest between principals (such as shareholders) and agents (such as company executives), which is a separate concept.

Transaction Costs Include All of the Following Costs, Except