Asked by Brittany Orozco on Jul 28, 2024
Verified
Markets reduce transactions costs:
A) by decreasing the time spent searching for information about goods and services.
B) only when they have a highly structured set of rules like the New York Stock Exchange.
C) because each market uses the same set of rules for buying and selling goods and services.
D) only when the government coordinates the plans of many buyers and sellers.
E) when prices are set by the sellers and are not determined by negotiation between the buyers and the sellers.
Transactions Costs
Expenses incurred when buying or selling goods or services, including but not limited to fees, charges, and other related costs.
New York Stock Exchange
One of the largest stock exchanges in the world by market capitalization, located in New York City.
- Grasp the concept of market equilibrium and the forces that drive towards it.
Verified Answer
NG
Nicole GlymphJul 28, 2024
Final Answer :
A
Explanation :
Markets reduce transaction costs by decreasing the time spent searching for information about goods and services. In a market, buyers and sellers come together and exchange goods and services based on mutually agreed-upon prices, which reduces the need for costly search activities.
Learning Objectives
- Grasp the concept of market equilibrium and the forces that drive towards it.