Costs to the firm arising from reaching agreements on input prices with suppliers and then ensuring that terms of agreements are fulfilled, are called
A) negotiation costs.
B) agency costs.
C) transactions costs.
D) implicit costs.

Question

Quizplus · Accepted Answer

Transactions costs refer to the expenses incurred during the process of buying or selling, which include negotiating and ensuring compliance with agreements.

Costs to the Firm Arising from Reaching Agreements on Input