We often simplify economic models by ignoring the role that transaction costs play in our decision-making. Purchasing a good often involves explicit transaction costs, such as the cost of the gasoline used to get to th but there are also implicit transaction costs such as the opportunity cost of the time spent shopping for and a product. The remaining questions will help you understand the importance of transaction costs.

We often simplify economic models by ignoring the role that transaction costs play in our decision-making. Purchasing a good often involves explicit transaction costs, such as the cost of the gasoline used to get to th but there are also implicit transaction costs such as the opportunity cost of the time spent shopping for and a product. The remaining questions will help you understand the importance of transaction costs.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 16P: Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers....

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