Transaction costs are likely to be ________ when property rights ...

[strangeaffliction]

Transaction costs are likely to be ________ when property rights are ________ clearly defined.
 
  A) lower ; less
  B) higher; more
  C) lower; more
  D) Trick question: there is no causal relationship between transaction costs and property rights.

Question 2

If the market in the figure above is a profit-maximizing single-price monopoly, consumer surplus is the area ________.
 
  A) ABH
  B) BFGH
  C) ACG
  D) BCD
  E) ACE

[Bigfoot1984]

Answer to Question 1

C

Answer to Question 2

A