The fundamental reason for the existence of transaction costs is:
A)the absence of perfect property rights.
B)the sheer number of transactions in an economy.
C)the fact that information is costly.
D)the fact that all economic agents have the same information.

Question

Quizplus · Accepted Answer

Transaction costs arise primarily because information is costly to obtain, process, and verify, leading to expenses in making economic exchanges.

The Fundamental Reason for the Existence of Transaction Costs Is