In economics, transaction costs refer to the
A) time, effort, and other resources needed to search out and negotiate an exchange.
B) dollar cost or price of the item traded.
C) cost an economy suffers when it allows specialization according to comparative advantage.
D) amount by which the price of an item increases due to the presence of a middleman.

Question

Quizplus · Accepted Answer

Transaction costs are the costs associated with the time, effort, and resources needed to search for, negotiate, and complete an exchange.

In Economics, Transaction Costs Refer to the