Explain the Distinction Between Transaction Costs and Other Costs That Occur in Economic Systems

Introduction
The economic importance of transaction costs in widely recognized. In modern economies, transaction costs have become equally (and perhaps more) important than production costs. Early economic theory focused entirely on production costs assuming that transaction costs did not exist. However, nowadays it has become relatively more sensible to do research in transaction cost rather than production cost.
Naturally, there are four parts to the essay. The first part explains the definition of transaction cost. …