Question

Select best example below illustrative of transaction costs.a. All of the above b. The costs of various dinners during which a client and vendor met. c. The cost of a business consultant hired to help improve company processes. d. The cost of hiring an accountant in order to file federal and state taxes.

Answer 1

Answer:

The correct option is A

Explanation:

Transaction costs are the whole array of costs associated with selling, buying, transferring goods etc.

Transaction costs can be of different types which are:

• search costs
• monitoring costs
• Bargaining costs
• transfer costs etc.