Question

Which of the following is included in transaction costs?

• A. Include only the financial costs of completing a given economic transaction.
• B. Include the financial and non-financial costs of completing a given economic transaction.
• C. Include the purchase price of the transacted item inclusive of sales taxes.
• D. Include the purchase price of the transacted item exclusive of sales taxes.

Answer 1

The correct option is B Include the financial and non-financial costs of completing a given economic transaction.

In economics and related disciplines, a transaction cost is a cost incurred in making an economic exchange of some sort, or in other words the cost of participating in a market.