Asset specificity is largest when
a. value in first best use is large
b. value in second best use is large
c. customers choose their supplier at random
d. very valuable assets are non-redeployable
e. customers are loyal to a particular seller
d
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Critically evaluate the following statement: "If no other assistance is available, tied aid should be accepted anyway, on the grounds that developing countries should accept any help they can get."
What will be an ideal response?
A "vertically integrated firm" is a firm that
a. combines firms which formerly competed. b. manages all stages of production, from the production of raw materials to the marketing of the final product, within the firm. c. earns zero economic profits due to the highly competitive market within which it operates. d. has representatives on its board of directors from many of the companies that it buys from and sells to.