Which of the following is a transaction cost?
A) price of a ticket to a concert
B) price of food eaten before a concert
C) time spent standing in line to buy the ticket
D) price of a T-shirt at the concert

Question

Quizplus · Accepted Answer

Transaction cost refers to the cost associated with making an economic transaction. It includes the time and effort spent in searching for a product or service, negotiating the terms of the transaction, and completing the transaction. In this case, the time spent standing in line is a transaction cost because it is the cost of obtaining the concert ticket. The price of the ticket, the price of food, and the price of a T-shirt are not transaction costs, but rather the prices of goods or services that may be acquired with the ticket.

Which of the Following Is a Transaction Cost