Transaction costs refer to:
A) fixed costs of capital.
B) variable costs of labor.
C) costs of exchange unrelated to production costs.
D) economies of scale.

Question

Quizplus · Accepted Answer

Transaction costs are the costs incurred in the process of exchanging goods or services, which are unrelated to the production costs. These costs include costs associated with searching for a trading partner, negotiating prices and terms, enforcing contracts, and resolving disputes.

Transaction Costs Refer To