Final answer:
Estimating the transaction price involves considering factors such as production costs, prices of related goods, sellers' expectations, and the number of sellers.
Step-by-step explanation:
Estimating the transaction price involves considering various factors such as the costs of production, the prices of related goods, sellers' expectations, and the number of sellers.
For example, the costs of production, including raw materials, labor, and overhead costs, can impact the transaction price. If the production costs are high, sellers might set higher prices to cover those costs.
Additionally, the prices of related goods can influence the transaction price. If similar products have higher prices in the market, sellers may adjust their prices accordingly. Finally, sellers' expectations and the number of sellers can affect the negotiation process and ultimately impact the agreed-upon price.