The marginal cost of financial transactions rises with the volume of financial transactions due to

Question

Quizplus · Accepted Answer

Congestion refers to an increase in the number of transactions that need to be processed which causes delays and increases the cost of processing each transaction. Thus, as the volume of financial transactions increases, the marginal cost of processing each transaction increases due to congestion. The other options (B-E) are not directly related to the marginal cost of financial transactions.

The Marginal Cost of Financial Transactions Rises with the Volume