What are transaction costs?

Question

Quizplus · Accepted Answer

Transaction costs refer to the costs incurred by buyers and sellers in agreeing to and executing a sale of goods or services, such as legal fees, advertising costs, and negotiation costs. Option B is incorrect because the government is not necessarily involved in every transaction. Option C is incorrect because transportation costs are also included in transaction costs. Option D is incorrect because the government's role in creating a structured market does not necessarily affect transaction costs.

What Are Transaction Costs