Per-unit transaction costs
A)may cause the demand and supply curves to shift either inward or outward depending on the value obtained from transaction agents.
B)refer only to the commission paid to a third party for each transaction made.
C)are absorbed by the party seeking the transaction.
D)have the same effect on behavior as do lump-sum transaction costs; the difference in terminology is purely definitional.

Question

Quizplus · Accepted Answer

Per-unit transaction costs can affect the behavior of both buyers and sellers, causing a shift in the respective demand and supply curves depending on the perceived value of the transaction agent's services. It includes not just commissions, but also other costs associated with executing a transaction, such as transportation and communication expenses.

Per-Unit Transaction Costs