Which of the Following Is Not Considered a Transaction Cost

Multiple Choice

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.