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    Question

    Employing a lawyer to draft and enforce a private

    contract between parties wishing to solve an externality problem is an example of a(n) ______________cost
    A opportunity Correct Answer Incorrect Answer
    B implicit Correct Answer Incorrect Answer
    C sunk Correct Answer Incorrect Answer
    D transaction Correct Answer Incorrect Answer
    E explicit Correct Answer Incorrect Answer

    Solution

    Transaction costs areexpenses incurred when buying or selling a good or service.

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