Monetary price and Transaction Costs

You are more probable to shop at a remote farmer’s market at a lower monetary price instead of purchasing apples at a higher monetary price at the local grocery store if: (i) Possible, as production is cheaper at the farmer’s market. (ii) You want to purchase only fruits and vegetables. (iii) The transaction costs of shopping at farmer’s market are less than the monetary price differentials among the markets. (iv) The opportunity cost of shopping at farmer’s market surpasses grocery store prices.

Find out the right answer from the above options.

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