Transaction costs are likely to be low when:
A) a contract cannot be easily enforced.
B) all aspects of a contract are fully speci?ed.
C) monitoring performance is di?cult.
D) the interpretation of a contract is vague.

Question

Quizplus · Accepted Answer

Transaction costs are likely to be low when all aspects of a contract are fully specified, as this clarity reduces the need for monitoring, enforcement, and dispute resolution.

Transaction Costs Are Likely to Be Low When