Any cost of negotiating or enforcing a contract is
A) an external cost.
B) a private cost.
C) a transaction cost.
D) a side payment.

Question

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The cost of negotiating or enforcing a contract is a transaction cost, which refers to the costs incurred in the process of making an exchange or transaction. It is a type of cost that is specific to the transaction and is not an external cost (A), a private cost (B), or a side payment (D).

Any Cost of Negotiating or Enforcing a Contract Is