If Luxury Cabinets, a kitchen cabinet manufacturer, builds a cabinet plant near Big Woods, a timber harvesting farm, to reduce the costs of transporting lumber, ________ potentially faces a hold-up problem as the firm invested in a ________.

A) Luxury Cabinets; transaction-specific asset
B) Big Woods; transaction-specific asset
C) Big Woods; negotiation asset
D) Luxury Cabinets; negotiation asse

A) Luxury Cabinets; transaction-specific asset

Economics

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