Examples of transaction costs include (check all that apply):

a. the time required to negotiate an agreement.

b. the difference between the private costs and social costs of production.

c. the cost of drafting a contract or agreement.

d. the cost of the externality.

e. the cost of monitoring an agreement.

Question

Business

Ashley Marks

8 December, 14:12

Examples of transaction costs include (check all that apply):

a. the time required to negotiate an agreement.

b. the difference between the private costs and social costs of production.

c. the cost of drafting a contract or agreement.

d. the cost of the externality.

e. the cost of monitoring an agreement.

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Answers (1)

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Lesly Holland · Answer 1

Examples of transaction costs include (check all that apply):

a. the time required to negotiate an agreement.

b. the difference between the private costs and social costs of production.

c. the cost of drafting a contract or agreement.

d. the cost of the externality.

e. the cost of monitoring an agreement.

Transactions costs are costs that are associated with buying and selling a good or service. These are the costs that are accrued during the transaction prices. Though some of the costs can range/change depending on what is being sold, most transactions accrue the same costs which are normally based around making the agreements.