Transaction costs reduce the benefit accruing to the parties ...

[OSWALD]

Transaction costs reduce the benefit accruing to the parties involved in an exchange. Explain why.

Question 2

When a firm grows to such an extent that it is unable to coordinate between its employees properly it is likely to experience economies of scale.
 a. True
  b. False
  Indicate whether the statement is true or false

[jojobee318]

Answer to Question 1

Transaction costs reduce benefits to the two parties because a part of the economic value goes into funding the transaction cost.

Answer to Question 2

False

[OSWALD]

Thanks for the timely response, appreciate it

[tkempin]

TYSM