Billy and Crystal want to do business together. Since this joint venture is highly risky for both parties, they hire a lawyer to draft and monitor a contract. The contract gives both Billy and Crystal assurance that the other will follow through on their promises. Identify the "transaction cost" in this arrangement.

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The Answer of Billy and Crystal want to do business together. Since this joint venture is highly risky for both parties, they hire a lawyer to draft and monitor a contract. The contract gives both Billy and Crystal assurance that the other will follow through on their promises. Identify the "transaction cost" in this arrangement.

Billy and Crystal Want to Do Business Together