Barter exchange's major limitation was that it involved huge trading cost. Which of the following costs can be considered as part of trading costs?

Search cost and disutility of waiting

The correct answer is option 3: Search cost and disutility of waiting

Explanation:

• Search cost: Refers to the time and effort spent finding someone who has the desired good and is willing to exchange it for what you have.
• Disutility of waiting: Refers to the inconvenience or loss of utility while waiting to find a suitable trading partner.

These costs were significant in a barter system because finding a match for your needs and waiting for the right opportunity could be time-consuming and inefficient.