Anjelica expects that her recent fatigue is being caused by pollution being dumped into a local stream by a factory in her community, and she wants to fix this problem

Briefly explain the transactions costs Anjelica is likely to experience in her quest to clean up the stream.

Anjelica must first discover which factory is emitting the pollution that is causing her fatigue so she knows who she must bargain with. The costs involved with this process are called search costs. Once Anjelica discovers who the polluter is, she needs to find any other victims in the community who are also suffering from fatigue so they can help her in the bargaining process. Once she identifies the other victims, she needs to organize and motivate them to help her with the negotiations. The costs involved with this process are called collectivization costs. At this point, Anjelica and her fellow victims need to confront the polluter and propose a bargain that will be beneficial to all parties involved, which involves negotiation costs. Finally, assuming a bargain can be successfully reached, Anjelica must make sure that all parties to the bargain live up to their agreements, and this involves monitoring and enforcement costs.