

MCQOPTIONS
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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 | |