Which of the following is NOT a transaction cost associated with using inputs?
A) Time spent negotiating labor contracts with union workers
B) Opportunity costs of negotiating the price of renting machines
C) Wages paid to labor
D) Costs of searching for a new supplier of machines

Question

Quizplus · Accepted Answer

Wages paid to labor are not a transaction cost associated with using inputs, as they are a direct cost of the production process rather than a cost associated with obtaining or using the inputs themselves. Choices A, B, and D all involve transaction costs associated with negotiating or searching for inputs.

Which of the Following Is NOT a Transaction Cost Associated