Individuals who specialize in activities that lower transaction costs are
A) consumers.
B) producers.
C) bureaucrats.
D) middlemen.

Question

Quizplus · Accepted Answer

Middlemen are individuals or firms that specialize in reducing transaction costs by bringing buyers and sellers together, coordinating exchange, and providing information and market access that would otherwise be difficult or costly to obtain. Therefore, they help in facilitating trade and lowering transaction costs.

Individuals Who Specialize in Activities That Lower Transaction Costs Are