Often trade will not occur because
A)transaction costs are too high
B)neither party has an opportunity cost
C)the benefits to one party just equal the losses to the other party
D)no one expects to gain from the trade
E)the profits of the firm are excessive

Question

Quizplus · Accepted Answer

Transaction costs refer to the additional costs incurred in the process of buying or selling a good or service, such as transportation costs or legal fees. If these costs are too high, it may not be feasible for trade to occur.

Often Trade Will Not Occur Because