If transactions costs exist, then the following is definitely not true:
A)There are externalities.
B)Information is free.
C)Information is not perfect.
D)Property rights are not perfect.

Question

Quizplus · Accepted Answer

If transactions costs exist, it implies that there are costs associated with exchanging goods or services. These costs could be in the form of time, effort, or money. If information were free, there would be no costs associated with acquiring it, and therefore, no transactions costs. However, since transactions costs do exist, it is clear that information is not free.

If Transactions Costs Exist, Then the Following Is Definitely Not