Often,private solutions are not possible due to the costs of negotiating and enforcing these solutions.What are such costs called
A)transaction costs
B)opportunity costs
C)deadweight loss
D)corrective taxes

Question

Quizplus · Accepted Answer

Transaction costs refer to the costs associated with negotiating and enforcing private solutions, such as the costs of drawing up and enforcing contracts, monitoring compliance, and resolving disputes. These costs can be prohibitively high, making private solutions infeasible, and requiring government intervention. Therefore, the answer is A, transaction costs.

Often,private Solutions Are Not Possible Due to the Costs of Negotiating