In the absence of an even-handed legal system, high transaction costs will eliminate many potential mutually advantageous trades and the accompanying gains from

Question

Quizplus · Accepted Answer

Without an even-handed legal system, high transaction costs will limit many trades and gains that could have been achieved through division of labor and specialization, expansion in the size of the market, and economies of scale resulting from use of mass production methods. Therefore, all of the above options are the best choices.

In the Absence of an Even-Handed Legal System, High Transaction