Changes

:Excellent.

:Excellent.

   

   

2. Imagine that your family has two options for dinner: eat at home, or go out to eat at McDonald's. Which option incurs more transaction costs? Identify two specific transaction costs. Which option is cheaper for your family, and why?  

2. Imagine that your family has two options for dinner: eat at home, or go out to eat at [[McDonald's]]. Which option incurs more transaction costs? Identify two specific transaction costs. Which option is cheaper for your family, and why?  

Eating out nearly always incurs greater transaction costs.  McDonald’s is no exception.  Cashiers, the people cooking the food, the person who owns the restaurant, all of whom need part of the profit, all add to the transaction cost.  Even though there are still cashiers and people who work at a normal food store, it still incurs fewer transaction costs, and is less expensive.   

Eating out nearly always incurs greater transaction costs.  McDonald’s is no exception.  Cashiers, the people cooking the food, the person who owns the restaurant, all of whom need part of the profit, all add to the transaction cost.  Even though there are still cashiers and people who work at a normal food store, it still incurs fewer transaction costs, and is less expensive.