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What is Transaction Costs
Transaction costs are the costs that are necessary to undertake an economic transaction (trade, exchange, delivery of goods or services, loans, etc.).

Transaction costs are the costs that are necessary to undertake an economic transaction (trade, exchange, delivery of goods or services, loans, etc.).

It is typically a time and effort spent on searching and obtaining the necessary information and the negotiation of the transaction.

Example: Transaction cost of shopping in the supermarket is the time spent traveling to the supermarket, the purchase and the way home.

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Last update: 09.05.2013

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