Which of the following is NOT a device to reduce transaction costs?
A) shopping centers
B) auto dealers located close together
C) government prohibitions on advertising
D) banks that direct funds from savers to borrowers

Question

Quizplus · Accepted Answer

Shopping centers, auto dealers located close together, and banks that direct funds from savers to borrowers all help reduce transaction costs by making it easier and more convenient for buyers and sellers to find each other and conduct transactions. Government prohibitions on advertising, on the other hand, may actually increase transaction costs by limiting the amount of information available to buyers and sellers.

Which of the Following Is NOT a Device to Reduce