Question

Transaction costs are best defined as the

a. various costs of different goods and services.
b. costs involved in borrowing money from someone, that is, the interest that must be paid for the use of someone else's money.
c.costs associated with the time and effort necessary to make an exchange.
d. cost of one good in terms of another, that is, the price of apples in terms of oranges

Answer 1

Costs associated with the time and effort necessary to make an exchange.

Step-by-step explanation:

Transaction cost includes the expenses that have been done for buying a good or service. On checking the different provided options, the correct option will be "c.costs associated with the time and effort necessary to make an exchange."