Identify some of the possible transactions costs involved in an ...

[charchew]

Identify some of the possible transactions costs involved in an exchange of a used car between two individuals.

Question 2

The long-run average-total-cost curve connects the lowest cost for each level of output given by the short-run average-total-cost curves.
 a. True
  b. False
  Indicate whether the statement is true or false

[Heffejeff]

Answer to Question 1

Transaction costs include the costs incurred by the seller and the buyer of the used car to locate each other. The transportation costs involved in meeting each other as well as the time involved in bargaining for a price is also a part of the transaction cost of this deal. If they do not speak the same language the services of an interpreter will add to the transaction cost.

Answer to Question 2

True