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.

View Complete Question

Related Questions in Microeconomics

Q : Price takers in product market I have a

I have a problem in economics on Price takers in product market. Please help me in the following question. Relative to firms which are price takers in product market, and then firms with market power tend to. (1) Hire some workers (2) Pay a lower wage

Q : Decreasing cost industries When average

When average production cost for Plastibristle Inc. falls like market demand increases and more firms go into the industry, Plastibristle is within: (1) an economically efficient industry. (2) a purely competiti

Q : Price inelastic over relevant range of

When the market demand for wheat is price inelastic over relevant range of prices, fluctuations within the supply of wheat will cause incomes of wheat farmers to: (w) increase when supply decreases and decline while the supply of whea

Q : Supply in short-run equilibrium When a

When a purely competitive industry is within short-run equilibrium, this: (w) should also be in long-run equilibrium. (x) won’t be in long-run equilibrium. (y) may or may not be within long-run equilibrium. (z) will experience m

Q : Rate of Return on Investment When the

When the rate of return on investment equals the interest rate, in that case the optimal level of investment will: (w) rise. (x) fall. (y) not change. (z) Any of the above is possible.

Q : Derived Demand for the Labor Can

Can someone please help me in finding out the accurate answer from the following question. Declines in international price of oil would be most probable to cause: (1) Wages of bicycle factory workers to rise. (2) Demand for automobiles to reduce. (3) Incomes of the ge

Q : Profit-maximizing level of output When

When LoCalLoCarbo, the favorite corporation of fad dieters, produces adequate output to minimize its average total costs that will: (1) produce more than the profit-maximizing level of output. (2) concurrently minimize its average variable cost. (3) p

Q : Demand of purely competitive firm for

This purely competitive firm’s demand as in given figure for labor corresponds to: (1) line segment ab. (2) line segment bd. (3) line segment be (4) line segment df. (5) line segment dg.

Q : Strategy of lowering then high price in

Juan, Celia, Cassie and Gupta operated rival gas stations at 4 corners of an intersection. Every one originally charged similar price for their gasoline but after Gupta slashed his prices, Juan and Celia as well as Cassie all shut down. Gupta in that case boosted pric

Q : Total fixed costs of purely competitive

Such lumber mill has incurred total fixed costs which average approximately: (1) $300 daily. (2) $500 per day. (3) $700 Per day. (4) $900 per day (5) $1100 per day.

Discover Q & A

Leading Solution Library

Avail More Than 1434901 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1958881
Asked

3,689

Active Tutors

1434901

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment