--%>

When would transaction cost be zero

All transaction costs would be zero when: (1) Congress required current prices to be cut by eighteen percent. (2) market information and transportation were both costless. (3) market prices were legally restricted to production costs. (4) inflation were removed. (5) intermediary operations were efficient.

I need a good answer on the topic of Economic problems. Please give me your suggestion for the same by using above options.

   Related Questions in Microeconomics

  • Q : Law of Equal Marginal Advantage I have

    I have a problem in economics on Law of Equal Marginal Advantage. Please help me in the following question. The very last cents spent on each and every good should give up equivalent subjective profits according to the principle of: (i) Subjective pre

  • Q : Decreases in market demand of

    Decreased market demand for generic bricks would result in a(n) ___________ in the price of bricks and a(n) ___________ in this brickyard’s profit-maximizing output. (w) increase; decrease. (x) increase; increase. (y) decrease;

  • Q : Problem on implicit belief in a moral

    Can someone please help me in finding out the accurate answer from the following question. Assume that when faced with the Faustian option [that is, a deal with the devil] of torturing an naive child in the interest of securing world peace and an end to global hunger,

  • Q : Problem on double taxation The word ‘

    The word ‘double taxation’ signifies to: (i) The Corporation paying both the federal and state taxes. (ii) Corporations paying the corporate income tax and shareholders paying the personal income tax on dividends. (iii) Both partners in pa

  • Q : Problem relating to Changes in Demand

    Airlines considerably decreased the number of flights accessible in the year 2005, as compared to flight availability during the year 2000. Passenger mileage was fall. Economists would be least possible to ascribe the decline in airline ticket sales throughout the ear

  • Q : Relative utility-Consumer Equilibrium

    Can someone please help me in finding out the accurate answer from the following question. The relative utility from the last dollar used up on food is the ratio: (i) Marginal utility of food or production cost of food. (ii) The Price of food or net grocery bill. (iii

  • Q : Relationship between MPS and multiplier

    Relationship between MPS and multiplier:K=1/1-MPC = 1/MPS or inverse relationship between MPS and the size of multiplier.

  • Q : Positively-sloped supply curve

    A straight-line, which positively-sloped supply curve which starts from the quantity axis is: (w) elastic for all prices and quantities. (x) inelastic for all prices and quantities. (y) unitarily elastic for all prices and quantities. (z) a sign that

  • Q : Average total cost curve in pure

    No firm can ever generate a pure economic profit unless this: (i) possesses some market power or monopoly power. (ii) can adjust both its level of output and the price of its products. (iii) faces a demand curve with a segment above its average total

  • Q : Problem regarding analyzing persistent

    In analyzing persistent shortages within the U.S. market for adoptable children: (w) children are most reasonably considered investment goods. (x) children might reasonably be functioned as consumer goods. (y) lower prices charged adopting families would result within