The expense of complex negotiated settlements in cases where many people are affected by negative externalities is known as:
A) government regulations.
B) corrective taxes.
C) transaction costs.
D) subsidies.

Question

Quizplus · Accepted Answer

Transaction costs refer to the expenses incurred in making an economic exchange, including the costs of negotiating and enforcing agreements. In the context of addressing negative externalities affecting many people, the process of reaching a complex negotiated settlement can involve significant transaction costs.

The Expense of Complex Negotiated Settlements in Cases Where Many