The cost of making an economic exchange is known as a(n)___________________________.

Question

Quizplus · Accepted Answer

The cost of making an economic exchange, such as buying or selling goods or services, is known as a transaction cost. This cost includes any expenses incurred in the process of agreeing to and executing the exchange, such as negotiation, transportation, communication, and even the time and effort spent searching for information and finding a suitable trading partner. Therefore, option A is the correct answer. Option B, C, and D are not accurate definitions of transaction cost.

The Cost of Making an Economic Exchange Is Known as A(n)___________________________