Economic Analysis of Social Issues 1st Edition by Alan Grant

Exercise 30

Fred lives in the United States and is interested in purchasing a crate of Trappist Westvleteren 12, a beer brewed by Belgian monks. The beer costs €40. In addition, the beer is sold only at the monastery gates, to customers who have made a reservation by telephone and who agree not to resell the beer to any third party. The costs of acquiring Westvleteren 12 above and beyond the €40 that would change hands for the purchase are called _______.
A) Transactions costs
B) Private costs
C) External costs
D) Side bargains