All the costs associated with making, reaching, and enforcing agreements are called

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Transaction costs refer to all the costs incurred in the process of making, reaching, and enforcing agreements. These costs can include legal fees, negotiation costs, communication costs, and other administrative costs. Private costs refer to the costs directly incurred by the individuals or firms involved in an agreement, while social costs refer to the total costs to society as a whole, including externalities. Opportunity costs refer to the benefits foregone by pursuing one choice over another.

All the Costs Associated with Making, Reaching, and Enforcing Agreements