The costs in time and other resources that parties incur in the process of agreeing to and carrying out an exchange of goods or services are called
A)exchange costs.
B)implicit costs.
C)transactions costs.
D)selling costs.

Question

Quizplus · Accepted Answer

The costs in time and resources that parties incur in the process of agreeing to and carrying out an exchange of goods or services are called transactions costs. These costs can include searching for information, negotiating prices and terms, and enforcing contracts. Therefore, the best choice is C) transactions costs.

The Costs in Time and Other Resources That Parties Incur