Transaction costs exist because:
A)the information is costly.
B)the information is asymmetric.
C)we need to define property rights.
D)the information is asymmetric and costly to obtain.

Question

Quizplus · Accepted Answer

Transaction costs exist due to both asymmetric information and the costs of obtaining information. Additionally, defining property rights can also incur transaction costs but the question only asks for the main reason. Therefore, option D is the best choice.

Transaction Costs Exist Because