Transaction costs increase the economic value of an exchange.

Name: Transaction costs increase the economic value of an exchange.
Brand: Quizplus
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Question

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Transaction costs represent the costs incurred in the process of carrying out an exchange, such as the cost of finding a willing partner, negotiating terms, and completing the transaction. These costs reduce the economic value of an exchange by increasing the overall cost to both parties involved.

Transaction Costs Increase the Economic Value of an Exchange