Formal, market-supporting institutions lower transaction costs and facilitate new entries.

Name: Formal, market-supporting institutions lower transaction costs and facilitate new entries.
Brand: Quizplus
Rating: 4.9 (35 reviews)

Question

Quizplus · Accepted Answer

Formal institutions such as legal systems, property rights protection, and contract enforcement provide a framework for safe and secure transactions, reduce uncertainty, and lower transaction costs. This, in turn, encourages more market activity and facilitates the entry of new businesses into the market.

Formal, Market-Supporting Institutions Lower Transaction Costs and Facilitate New Entries