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.