Question

Amy no longer needs her old television. She pays $30 to post an ad in home, le spots the ad and rents a van for $80 an hour in work in order to pick up the television. the local paper: "FREE television-you haul. Alex needs a television for his new Alex cams $26 per hour as a loan officer. He takes an hour off order to haul the talevision. The transaction costs associated with this exchange are Grade It Now Save & Contnue Contine withour saving

Answer 1

Transaction cost = Total explicit costs + Implicit cost = (Susan's ad expense + Steve's van rental cost) + Steve's earning lost

= $30 + $80 + ($26 x 1) = $110 + $26

= $136