Private solutions may not be possible due to the costs of negotiating and enforcing these solutions. Such costs are called
A)transaction costs.
B)corrective costs.
C)input costs.
D)private costs.

Question

Quizplus · Accepted Answer

Transaction costs refer to the costs involved in negotiating and enforcing private solutions. Therefore, private solutions may not be possible if these costs are too high. Corrective costs refer to the costs involved in correcting a problem or mistake, input costs refer to the costs of inputs used in production, and private costs refer to the costs borne by an individual or firm for their own actions.

Private Solutions May Not Be Possible Due to the Costs