Which of the following is true regarding value, transaction costs, and exchange?
A) Middlemen can be viewed as agents who create value by reducing transaction costs and, thereby, facilitating gains from exchange.
B) Middlemen fail to create value since they do not expand the supply of physical goods.
C) A good or service has a given value regardless of who uses it or how it is used.
D) Voluntary exchange reduces value by channeling goods into the hands of people who value them least.

Question

Quizplus · Accepted Answer

Middlemen create value by reducing transaction costs, making exchanges more efficient and beneficial for all parties involved.

Which of the Following Is True Regarding Value, Transaction Costs