Which of the Following Is NOT a Device to Reduce

question 215

Multiple Choice

Which of the following is NOT a device to reduce transaction costs?

• A) shopping centers
• B) auto dealers located close together
• C) government prohibitions on advertising
• D) banks that direct funds from savers to borrowers

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Definitions:

Short Run

A period in economics where at least one factor of production is fixed and cannot be altered.

Inputs

Resources such as labor, materials, and capital used in the production process to create goods or services.

Existing Firms

Companies or businesses that are currently in operation within a particular market or industry.

Fixed Cost

Expenses that do not change with the level of output or sales in the short term, such as rent, salaries, and insurance.