Transaction Costs Are

question 11

Multiple Choice

Transaction costs are:

• A)the price paid for a good
• B)the cost that society places on a good
• C)what it costs two parties to negotiate with each other
• D)the same as a Pigovian tax

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Definitions:

Liquidated Damages

Liquidated damages are predetermined damages agreed upon by parties in a contract, to be paid if one party breaches the agreement.

Free-Will

The concept that humans have the ability to make choices that are not predetermined by past events or divine intervention.

Ordinary Circumstances

Conditions or situations that are considered usual or normal within a specific context or environment.

Promise

A declaration or assurance that one will do something or that a particular thing will happen.