Which of the following is not classified as a transaction cost borne by parties when negotiating to address a pollution externality?

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Expenses related to legal counsel feesExpenditures for actually decreasing the pollutionCosts associated with ensuring the contract is upheldCosts arising from the involvement of many affected partiesAll of the above are examples of transaction costs

Explanation

Transaction costs include expenses such as legal fees, enforcement costs, and those related to coordinating among many parties. However, the actual costs of reducing pollution are not considered transaction costs; they are the direct costs of mitigating the externality.