|
(i) Measurement
cost
Since goods must
be measured or graded before they are priced and sold, the time and effort
spent on measuring the attributes and deciding on the price of goods are
called measurement cost.
 
(ii)
Information cost
It is the cost associated
with searching for and acquiring information which is a major part of
the costs in affecting a transaction between buyers and sellers.
(iii)
Enforcing
cost
It is a cost
involved in protecting one's property rights. For example, it is the cost
incurred in enforcing the rights to tables and seats in a restaurant.
(iv)
Monitoring cost
It is the cost involved
in monitoring workers in order to minimize shirking and encourage them
to work harder.
¡@
|