Transaction costs include
A)costs of negotiating contracts with other firms.
B)cost of enforcing contracts.
C)the existence of asset-specificity.
D)All of the above

Question

Quizplus · Accepted Answer

Transaction costs include all of the above factors, including the costs of negotiating contracts with other firms, the cost of enforcing contracts, and the existence of asset specificity. These costs can have a significant impact on business operations and profitability, so it is important for firms to consider them when making decisions about outsourcing, partnerships, and other business relationships.

Transaction Costs Include