Which of the following is not considered a transaction cost incurred by parties in the process of contracting to eliminate a pollution externality ?

costs incurred to enforce the agreement

costs incurred due to lawyers’ fees

costs incurred to reduce the pollution

costs incurred due to a large number of parties affected by the externality

All of these answers are considered transaction costs

Which of the following is not considered a transaction cost incurred

1.	Which of the following is not considered a transaction cost incurred by parties in the process of contracting to eliminate a pollution externality ?
A.	costs incurred due to lawyers’ fees
B.	costs incurred to reduce the pollution
C.	costs incurred to enforce the agreement
D.	costs incurred due to a large number of parties affected by the externality
E.	All of these answers are considered transaction costs
Answer» C. costs incurred to enforce the agreement