Which of the following is not a problem when measuring transaction costs?
A)transaction costs are net of trade benefits
B)transaction costs reduce the volume of trade
C)transaction costs are difficult to observe
D)transaction costs are normally opportunity costs

Question

Quizplus · Accepted Answer

Transaction costs being net of trade benefits is not a problem when measuring transaction costs. The main issues are their difficulty to observe, their effect on reducing trade volume, and that they often represent opportunity costs.

Which of the Following Is Not a Problem When Measuring