Which of the Following Correctly Describes a Transaction Cost

question 77

Multiple Choice

Which of the following correctly describes a transaction cost?

• A) A transaction cost is the cost associated with organizing the transaction of goods or services.
• B) A transaction cost is the rent paid to capital used in production.
• C) A transaction cost is the wage paid to labour, a factor of production.
• D) A transaction cost of an activity is the cost of the next best alternative that was given up.

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