Markets tend to
A) exist primarily in towns or cities.
B) increase transaction costs.
C) reduce transaction costs.
D) make exchange more difficult.

Question

Quizplus · Accepted Answer

Markets tend to reduce transaction costs by bringing buyers and sellers together in one place, which reduces the cost of searching for potential trading partners. This also facilitates competition among sellers, leading to lower prices for buyers. Additionally, markets can provide information about prices and quality that would otherwise be costly to obtain, further reducing transaction costs.

Markets Tend to