In a market system, the costs associated with exchanging goods are known as
A)voluntary costs.
B)signaling costs.
C)wholesale costs.
D)transaction costs.

Question

Quizplus · Accepted Answer

Transaction costs are the costs associated with exchanging goods in a market system. These costs include expenses such as searching for information about products, negotiating prices, and enforcing contracts. Transaction costs can become a significant barrier to trade, particularly in situations where there is a lack of trust between buyers and sellers.

In a Market System, the Costs Associated with Exchanging Goods