Five people want to have a lighted garden built at the entrance to their neighborhood. The difficulties they experience in getting one another to commit to paying for the garden are best described as

Question

Quizplus · Accepted Answer

The difficulties in getting everyone to commit to paying for the garden represent transaction costs, which are the costs associated with making an economic exchange, including negotiating, enforcing agreements, and managing free-rider problems.

Five People Want to Have a Lighted Garden Built at the Entrance