Saved Bookmarks
| 1. |
When the barter system was in use , a merchant had to incur cost in the absence of money. What were those costs ? |
| Answer» Solution :In barter system, a merchant had to incur TRADING cost which are nothing but costs of ENGAGING in TRADE. Its two COMPONENTS are (i) Search costwhich is cost of searching suitablepersons to exchange goods and(ii) Disutility of waiting which means cost equivalent to wastage of time period spent on finding out the REQUIRED person. | |