Transaction costs include all of the following costs EXCEPT
A) search costs
B) negotiating costs
C) agency costs
D) monitoring costs

Question

Quizplus · Accepted Answer

Transaction costs are the sum of search costs, negotiation costs, contracting costs, monitoring costs, and enforcement costs. These transaction costs can be avoided by internalizing the activity, in other words, by producing the input in-house.

Transaction Costs Include All of the Following Costs EXCEPT