The formula to calculate the Transaction Cost (TC) is:
\[ TC = \frac{CT}{T} \]
Where:
A transaction cost is a measure of the average cost for every transaction that a business or person is charged.
Let's assume the following values:
Using the formula to calculate the Transaction Cost:
\[ TC = \frac{500}{25} = 20 \text{ $/transaction} \]
The Transaction Cost is $20 per transaction.
